NEFT vs RTGS

This is the sixth and last post in the series of Jargons of Online Banking.

Time Limit:
In NEFT, settles the transactions in batches. The settlement takes place at pre-decided points of time. All transactions are held up till that time. Any transaction initiated after a designated settlement time would have to wait till the next designated settlement time. Contrary to this, in RTGS, transactions are processed continuously throughout the RTGS business hours.

Charges:
Sender might have to pay up to Rs 25 in case of NEFT and up to Rs 50 in case of RTGS.

Minimum Limit on amount of Funds Transfer:
RTGS need that funds transferred should be at least Rs 1 Lakh. There is no such limit in NEFT transfers.

Maximum Limit on amount of Funds Transfer:
No Limit on any of them.