NEFT & RTGS COMPARISON
National Electronic Fund Transfer
1. RBI ROLE:Reserve Bank of India does not play any major role in NEFT.
2. TRANSACTION LIMIT: There is no upper and lower limit in NEFT.
3. NEFT enables Fund transfer from one Bank to another on a Deferred Net Settlement (DNS) basis, which settles transactions in batches.
4. CHARGES: There are 4 slabs in it:-
A. For transactions Upto Rs. 10000
-> Rs. 2.50 + (Service Tax).
B. For transactions above Rs. 10000 & upto Rs. 1lakhs-> Rs. 5 + (Service Tax)
C. For transactions above Rs. 1lakh and Upto Rs. 2lakhs-> Rs. 15 + (Service Tax)
D. For transactions above Rs. 2lakhs
-> Rs. 25 + (Service Tax)
5. TIME LIMIT: Through NEFT the transaction is completed either on the same day on the next working day.
6. WORKING HOURS:NEFT transaction timing in each Bank is 9:00 A.M to 7:00 P.M. for weekdays and 8:00 A.M. to 1:00 P.M. on Saturday.
Real Time Gross Settlement
1. RBI ROLE :Reserve bank of India acts as a Middle man in RTGS.
2. TRANSACTION LIMIT: There is no upper Limit for RTGS transaction but a minimum amount of Rs. 2lakhs is required.
3. RTGS is a fund transfer system where transfer of money or securities takes place from one bank to another on a “Real time and Gross” basis.
4. CHARGES: Rs. 30 per transaction is charged for Rs. 55 for amount exceeding 5 Lakhs.
5. TIME LIMIT: Through RTGS, the transaction is to be completed within 30 minutes.
6. WORKING HOURS :RTGS transaction timing in every Bank is 8:00 A.M. to 8:00 P.M. for weekdays and for Saturday it is 8:00 A.M. to 3:30 P.M.