All You Need To Know About NEFT vs RTGS

All You Need To Know About NEFT vs RTGS

When it comes to domestic transfers in India, three different acronyms are essential to know: NEFT, IMPS, and RTGS.

While all online money transfer services are available in Indian banks, each operates with other settlements, timings, and transaction limits. So, understand them thoroughly.

To send money using these methods, you need to open Savings Account in a bank and transfer money after 24 hours of operation. It is convenient, simple, and wise to store funds in the Bank Account to earn interest and save for other emergencies. Nowadays, banks in India offer a Banking app to all their customers for unlimited access. Use the following methods for fund transfer:


National Electronic Funds Transfer allows individuals, companies, and organisations to perform one-to-one bank transfers digitally. However, the system only works if both banks are NEFT-enabled, with transfers in batches. You need to ensure your recipient’s Bank Account information and their bank’s IFSC, a unique identifier for their bank branch. There are no charges or transaction limits.

NEFT is simple to use and applicable to send money to your friends or family, make payments, or pay rent. If you have funds in your Bank Account, there are no limits on its usage. Additionally, knowing the difference between NEFT and RTGS is helpful for both parties.


RTGS or Real-Time Gross Settlement is another option for online money transfer with your Saving Bank Account. This happens in real-time, and the settlement is not done on a one-by-one basis. The transfers only settle during banking hours. So, if it is a bank holiday or after working hours, your transfer is on hold till the bank opens the next day.

The Reserve Bank of India do not set the fees, and so the banks can decide their charges for the service. This payment solution is for large transactions as the minimum amount per transfer is Rs. 2 lakh.


It is another popular method to send and receive money in India. After looking at NEFT vs RTGS, you can also consider the Immediate Payment Service for instant interbank transfers from the Bank Account. Like NEFT, your bank needs to be a participating member of IMPS. This online transfer service allows for transfers 24 hours a day, seven days a week, 365 days a year.

Whether it is a weekend or public holiday, you can transfer money to your friend or payee’s online Bank Account. The charges depend on the bank you are using. Similarly, the bank decides the minimum and maximum transaction limits for IMPS.


Banks have revolutionised their services and launched different apps for all smartphones. Sending and receiving money is no more a hassle, saving time and effort.