Difference Between NEFT and RTGS
1. The basic difference between them are settlement timings. RTGS is based on the gross settlement where the transaction is settled on an instruction by instruction basis. NEFT is an electronic fund transfer system that operates on a Deferred Net Settlement (DNS) basis which settles transactions in batches.
2. As per the Reserve Bank of India for RTGS the minimum amount should be above Rs 2 lakh and NEFT has no limit either minimum or maximum – on the amount of funds that could be transferred using NEFT.
3. RTGS is done on continuous basis whereas NEFT operates in hourly batches - there are eleven settlements from 9 am to 7 pm on week days (Monday through Friday) and five settlements from 9 am to 1 pm on Saturdays.
Charges applicable for the transaction
For transactions up to Rs 1 lakh – not exceeding Rs 5 (+ Service Tax)
For transactions above Rs 1 lakh and up to Rs 2 lakhs – not exceeding Rs 15 (+ Service Tax)
For transactions above Rs 2 lakhs – not exceeding Rs 25 (+ Service Tax)
For transactions between Rs 2 lakh to Rs 5 lakh - not exceeding Rs. 30 per transaction.
For transactions above Rs 5 lakh - not exceeding Rs. 55 per transaction.