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What is The Difference In Charges Between The NEFT and RTGS?
The National Electronic Fund Transfer and the Real Time Gross Settlement are two ways to remit money in India. Both are different in many ways. Let us understand the difference between the two with the help of this table:
| NEFT | RTGS | |
| Amount that can be transferred | Smaller amounts | Amounts that run into lakhs |
| Charges | Rs 2.5 for amounts below Rs 10,000 | Rs 2 lakh up to Rs 5 lakh - Rs 25 + Service Tax Amount above Rs 5 lakh up to Rs 10 lakh - Rs 50 + Service Tax |
| Time for transfer | Before 2 hours | Real time, but, does take 30 minutes. |
| Timings | From 8 am to 6.30 pm | 8.15 pm to 4.15 pm |
| Minimum amount | Not stipulated | Rs 2 lakhs |
| Type of amounts | For small amounts | For large amounts |
Difference in charges between NEFT and RTGS?
If you transfer an amount of less than Rs 10,000, the charges applicable is just Rs 2.50 plus service tax, which is certainly reasonable.
RTGS Charges
In the case of RTGS, the charges is Rs 25, for amounts above Rs 2 lakh upto Rs 5 lakh, in addition to service tax. On the other hand the amount above Rs 5 lakh upto Rs 10 lakh, it is Rs 50, plus Service Tax.
So what really is the difference in service charges between NEFT and RTGS? It is not really significant. The charges are almost the same. In fact, if you want to transfer large sums of money, you may use the RTGS, or else you need to stock to stick to NEFT.
The other advantage of the RTGS is that it is faster and can also be scheduled in advance.
What information do you need before you can undertake NEFT and RTGS?
The following is needed before you undertake these transactions:
1) IFSC Code
Each bank branch has a unique IFSC code. Once you are in possession of this code, half your job is done. Check with the person whom you are remitting to for this code. We have provided you a list of bank branches and their IFSC code.
2) Amount that you need to send
3) Name of the person's bank and branch
This is often called the beneficiary's bank and branch. Ask the person into whose account you are remitting for all the details.
4) Name of the beneficiary.
You must most certainly have the below, if you want to successfully send and remit your money. Do take a careful look at the IFSC code.
Conclusion
You can use either of these for remittance purposes. Both are efficient and in case the amounts are not credited, it is returned back to the person remitting. It is safe, fast and hassle free.
Do not worry in case the amount is not remitted for whatever reason. It is likely to return back to your account. A reliable way for transfer.
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