RTGS (Real Time Gross Settlement)
RTGS is a real-time funds transfer system used for large-value transactions. It enables individuals and businesses to transfer money from one bank account to another on a “real-time” basis. The transactions are settled individually, on a gross basis, meaning each transaction is processed and settled individually without being grouped with others.
Features
- RTGS is a secure and reliable system for transferring funds.
- Funds are transferred to the beneficiary’s account in real time.
- The beneficiary’s bank credits their account within two hours of receiving the funds message.
- There is no need for the beneficiary to physically visit a bank branch to deposit paper instruments.
- The transaction charges for RTGS have been regulated by the RBI.
NEFT (National Electronic Funds Transfer):
NEFT is an electronic funds transfer system used for both small and large-value transactions. It operates in batches and settles transactions periodically, rather than in real-time like RTGS. The transactions are grouped together and processed in batches at fixed intervals throughout the day.
Features
- NEFT is an adaptation of the Special Electronic Fund Transfer (SEFT) system.
- NEFT is utilized nationwide by individuals and institutions.
- Although the transfer of funds is not immediate, transactions are processed in specific batches at predetermined times.
- The beneficiary’s account is credited on the same day or the next day if the remittance is made late in the evening.
- The beneficiary can access and utilize the funds on the same day or the next day.
