NEFT vs RTGS | Still confused which one is better? |

Money transactions are becoming more simpler and safer.So for us,it is very important to know which transaction suits you according to your need and purpose.There are numerous options available to transfer your money,but among them NEFT and RTGS are the to most commonly used methods to transfer money.But there is still a confusion among the people that which one is better.

NEFT-National Electronic Fund Transfer
NEFT National Electronic fund transfer logo,NEFT vs RTGS,RBI,SBI
Image courtesy-arabiatrips
It is a country-wide system by which an individual,firm or company can electronically transfer funds from any bank branch to another individual,firm or company having an account with any other bank branch in the country.

1.NEFT originally settled fund transfers in hourly batches with 12 settlements between 8:00 AM and 7:00 PM on week days except second and fourth Saturday of the month.No transactions are settled on public holidays.But in April 2016, the RBI announced that clearance times would be reduced to half-hourly batches raising the number of settlements per day to 23.This means your money goes is batches and not in one go.
2.There is no minimum value for the transactions but in case one does not have bank account,the maximum amount that can be transferred through NEFT is Rs 49,999.
3.There are no charges on inward transactions at destination bank branches for credit to beneficiaries account.But in case of outward transactions,the charges are as follows-

For transactions upto Rs 10,000(not exceeding)-Rs 2.50(+GST)
For transactions above Rs 10,000 upto 1 lakh(not exceeding)-Rs 5(+GST)
For transactions above Rs 1 lakh upto 2 lakhs(not exceeding)-Rs 15(+GST)
For transactions above Rs 2 lakhs-Rs 25(+GST)

4.In order to receive funds through NEFT, an individual firm or company must have a bank account with NEFT enabled bank branch.As per January 2011 data,there are 74,680 NEFT enabled branches
5.NEFT has became popular due to its saving on time and the ease with which the transactions can be concluded, This reflects from the fact that 42% of all electronic transactions in the 2008 financial year were NEFT transactions.

RTGS-Real Time Gross Settlement 
RTGS is a fund transfer system under which transfer of funds takes place from one bank to another on real time and gross basis.Real time means,there is no waiting period in payment of transaction i.e transaction is settled as soon as it is processed.Gross settlement means,transaction is made on one to one basis and not in batches.
Real time gross settlement (RTGS) logo,SBI,RBI,RTGS vs NEFT
Image courtesy-keralagbank
1.The minimum transaction value in this system is Rs 2 lakh.There is no maximum value on the transactions by RTGS.
2.There is no cahrge on the inward transactions at destination bank branches for credit to beneficiaries account.The service charges are quite high in case of outward transactions. 

For transactions above Rs 2 lakh upto 5 lakhs(not exceeding)-Rs 30(+GST)
For transactions above 5 lakhs-Rs 55(+GST)

3.RTGS service is available to customer from 9:00 am to 4:30 pm from Monday to Saturday except second and fourth Saturday.
4.RTGS systems are mainly used for transactions carrying high amont that require and receive immediate clearing.
5.According to 2005 reports,there are 90 central banks that has RTGS system implemented.

According to the recent reports,HDFC bank is India's first bank to offer free online NEFT and RTGS services to its customer.

So it fully depends on you,which one you want to use according to your needs and purpose.
NEFT vs RTGS | Still confused which one is better? | NEFT vs RTGS | Still confused which one is better? | Reviewed by Saurabh Jadhav on November 26, 2017 Rating: 5
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