Diffference between NEFT and RTGS
Many of my friends and
client often ask about NEFT and RTGS. There is a bit confusion among the people
for NEFT and RTGS. These terms are frequently used in online banking now a days.
It is much convenient than cheque payment. A cheque takes much longer time
compare with NEFT and RTGS facility. Today we will discuss about it.
RTGS : RTGS stands for Real Time Gross Settlement which
means that you can move money for one bank to another bank on a real time and
gross basis. Gross means fund transfer happen in individual level. It is
fastest available medium for money transfer in our country.
NEFT : NEFT stands for National Electronic Fund Transfer .
It also transfer money from one bank to another bank like RTGS but it does it
in batches. It means in one batch it may be include many individual’s fund
transfer requests.
Major Difference between NEFT and RTGS:
· In NEFT, there is no
minimum or maximum limit for transfer amount whereas in RTGS the minimum limit
of fund transfer is Rs 2 Lakh and no upper.
·
For RTGS timing 9:00 am
to 4:30 pm on weekdays and on Saturday 9:00 am to 1:30 pm. For NEFT timing for
weekdays is 9:00 am to 7:00 pm and 9:00 am to 1:00 pm for saturday. Confirm
timing from your bank also.
· In NEFT, cash transfer
happen in batches. It has 11 settlements from 9 am to 7 pm on weekdays and five
settlements from 9am to 1pm on Saturdays. If you initiate a transaction after a
settlement time you have to wait till the next day. In case of RTGS transactions,
request are processed constantly throughout the business hours.
·
There is no inward transaction
charges means if funds come in your account so have to pay nothing but if you transfer
it from your account then you have to pay some charges. These charges may be
different for different banks. For transactions up to 1 lakh the max limit is
Rs 5 + service tax. Transaction between 1 lakh to 2 lakh the max charges Rs 15
+ service tax. For above 2 lakh
transaction this limit would be Rs 25 lakh + service tax. It would be much
better confirm the transaction charges from you bank before use NEFT/RTGS
facility.
For more detail about any other query related investment, you can contact
me through my email.
Regards,
Arvind Trivedi
Certified Financial Planner
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