RTGS & NEFT Transactions Explained

RTGS (Real-Time Gross Settlement) and NEFT (National Electronic Funds Transfer) are two major electronic payment systems in India, managed by the Reserve Bank of India (RBI) for secure and efficient fund transfers.

Real-Time Gross Settlement (RTGS)

RTGS is designed for large-value transactions that require immediate settlement.

Key Features:

·       Instant Fund Transfer: Transactions are settled in real-time, meaning the money is credited instantly to the beneficiary's account.

·       No Upper Limit: No maximum limit for transactions, but the minimum amount is ₹2 lakh.

·       Availability: Available 24/7, 365 days (including weekends and bank holidays).

·       Used for High-Value Transactions: Preferred for real estate payments, corporate transfers, and high-value business transactions.

·       Settlement Type: Transactions are settled individually and instantly (not in batches).

RTGS Charges (As per RBI Guidelines)

• Online (Internet & Mobile Banking): No charges.
• Branch Transactions: Banks may charge fees for RTGS initiated via bank branches.

National Electronic Funds Transfer (NEFT)

NEFT is used for small- to medium-value transactions that do not require immediate settlement.

Key Features:

Ø  Batch Processing: Transactions are processed in batches every 30 minutes throughout the day.

Ø  No Minimum or Maximum Limit: Even ₹1 can be transferred via NEFT.

Ø  Available 24x7: NEFT is operational round the clock, including weekends and holidays.

Ø  Ideal for Retail & Business Payments: Used for salary transfers, vendor payments, and utility bill payments.

Ø  Settlement Type: Transactions are settled in half-hourly batches rather than individually.

NEFT Charges (As per RBI Guidelines)

• Online (Internet & Mobile Banking): No charges.
• Branch Transactions: A small fee may apply based on the transfer amount.

Latest Updates (April 2025) on RTGS & NEFT

·       Beneficiary Name Verification – Users can now verify the recipient’s name before sending money

·       Mandatory Implementation – All banks must provide this feature from April 1, 2025

·       Free Verification Service – Customers can use the name verification feature without any extra charges.

NEFT (National Electronic Funds Transfer) processes transactions in batches, suitable for smaller transfers, while RTGS (Real Time Gross Settlement) settles transactions individually and instantly, ideal for high-value, time-sensitive transfers.