Knowing the difference between NEFT and RTGS can help you choose the right transfer method based on the amount, urgency and your bank’s available channels. Both are RBI-operated electronic fund transfer systems used to move money between participating bank accounts in India, but they differ mainly in how transactions are settled and the minimum amount required for RTGS.
NEFT processes transfers in half-hourly batches, while RTGS settles eligible transfers individually in real time. Both systems are available 24×7 throughout the year, including weekends and bank holidays.
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What is NEFT?
NEFT stands for National Electronic Funds Transfer. It is a nationwide centralised payment system owned and operated by the Reserve Bank of India (RBI). NEFT transactions are processed in half-hourly batches throughout the day and can be initiated through internet banking, mobile banking or a bank branch, subject to the services offered by your bank.
RBI does not prescribe a minimum or maximum amount for NEFT transfers. However, individual banks may set their own transaction limits based on internal policies and the channel used.
What is RTGS?
RTGS stands for Real Time Gross Settlement. In RTGS, each eligible fund transfer is processed and settled individually in real time instead of being grouped into batches. It is mainly designed for high-value transfers.
The minimum amount for an RTGS transfer is ₹2 lakh. RBI does not prescribe an upper ceiling, although a bank may apply its own channel-specific limits or controls.
Details Required for NEFT and RTGS Transfer
Keep the following details ready before initiating a NEFT or RTGS transfer:
- Beneficiary name
- Beneficiary bank and branch name
- Beneficiary account number
- Beneficiary account type, where required
- IFSC of the beneficiary bank branch
- Amount to be transferred
- Account to be debited
- Sender-to-receiver information or payment remarks, if required
- Legal Entity Identifier (LEI) details for transactions where the applicable RBI rules require them
Always verify the beneficiary account number and IFSC carefully before confirming the transfer. The exact fields shown may vary by bank and channel.
Difference Between NEFT and RTGS
Here are the key differences between NEFT and RTGS:
Timings
Both NEFT and RTGS are available 24×7, on all days of the year, including weekends and bank holidays. NEFT operates in 48 half-hourly settlement batches each day, while RTGS processes transactions continuously on a transaction-by-transaction basis.
Minimum and Maximum Limit
RBI does not prescribe a minimum or maximum transfer amount for NEFT. For RTGS, the minimum transfer amount is ₹2 lakh and there is no maximum ceiling prescribed by RBI. Your bank may impose lower channel-specific limits for either system.
Settlement Speed
NEFT is a batch-based system. Transactions are taken up in half-hourly batches, and RBI states that the beneficiary account should generally be credited within two hours of the relevant batch settlement. In practice, many NEFT transfers may be completed sooner.
RTGS settles the transfer in real time at the system level. Under normal circumstances, the beneficiary bank receives the funds as soon as the remitting bank transfers them and must credit the beneficiary’s account within 30 minutes of receiving the RTGS message.
Charges
Charges depend on the transfer type, channel and bank. The figures below are RBI rules or maximum ceilings, not compulsory charges that every bank must levy.
| Transfer / Amount | RBI Charge Guidance |
|---|---|
| NEFT – inward transfer | Nil |
| NEFT – online transfer from a savings bank account | Nil; banks have been advised not to levy a charge |
| NEFT – other outward transfer up to ₹10,000 | Up to ₹2.50 + applicable GST |
| NEFT – above ₹10,000 to ₹1 lakh | Up to ₹5 + applicable GST |
| NEFT – above ₹1 lakh to ₹2 lakh | Up to ₹15 + applicable GST |
| NEFT – above ₹2 lakh | Up to ₹25 + applicable GST |
| RTGS – inward transfer | Nil |
| RTGS – ₹2 lakh to ₹5 lakh | Up to ₹25 + applicable tax |
| RTGS – above ₹5 lakh | Up to ₹50 + applicable tax |
Actual charges can be lower or nil depending on your bank, account type and transfer channel. Check your bank’s current schedule of charges before initiating a transaction.
Which is Better: NEFT or RTGS?
Neither method is universally better; the right option depends on the amount and how quickly you need settlement. NEFT can be used for transfers of different sizes because RBI does not prescribe a minimum amount, making it suitable for routine payments. RTGS is designed for transfers of ₹2 lakh or more and is preferable when real-time settlement is important.
NEFT should not be understood as taking a minimum of 30 minutes or always taking up to two hours. It operates in half-hourly batches, and the two-hour RBI timeline is measured from the settlement of the relevant batch. Actual credit may happen sooner depending on when the instruction enters the batch and the banks involved.
Once you understand the difference between NEFT and RTGS, you can choose the payment method that suits your transfer. For everyday card and UPI payments, the Fibe Axis Bank Credit Card is a numberless RuPay credit card that can be linked to UPI. It currently offers 3% cashback on eligible food delivery, local commute and entertainment spends, and 1% cashback on other eligible spends, subject to the card’s terms and exclusions. You can check eligibility and apply through the Fibe App.
FAQs on NEFT and RTGS
1.Why is RTGS faster than NEFT?
RTGS processes eligible transfers individually and in real time. NEFT processes transactions in half-hourly batches, so the exact credit time depends on when the instruction enters the next batch and when the beneficiary bank credits the account.
2.Which is cheaper, NEFT or RTGS?
The answer depends on your bank, account type and channel. Online NEFT transfers from savings bank accounts should not attract a bank charge under RBI guidance. For other NEFT and RTGS outward transactions, RBI prescribes maximum charge ceilings, but banks may charge less or waive the fee altogether.
3.Can I use NEFT or RTGS for international money transfers?
Generally, NEFT and RTGS are used for transfers within India between participating accounts. NEFT has a specific one-way Indo-Nepal Remittance Facility for eligible transfers from India to Nepal. For most other international remittances, banks use separate foreign-remittance channels and applicable foreign-exchange rules.
4.Are NEFT and RTGS available on weekends and bank holidays?
Yes. Both NEFT and RTGS are available 24×7 throughout the year, including weekends and bank holidays, subject to any temporary system or bank-level maintenance windows.
