RTGS/NEFT

RTGS –Real-Time Gross Settlement
RTGS is an electronic system for instant, secure fund transfers between banks, settling transactions individually in real-time, not in batches, making payments final and irrevocable, often used for large amounts (minimum ₹2 Lakh in India). It’s safer than older methods and crucial for immediate, high-value payments, operating continuously through bank apps or branches. 
Key Features & How it Works:

• Real-Time: Transactions are processed immediately as they’re received, with no waiting period.
• Gross Settlement: Each transaction is settled individually, one-by-one, unlike batch systems (like NEFT).
• Final & Irrevocable: Once settled through the central bank (RBI in India), payments are final.
• High Value: Minimum transfer amount is ₹2 Lakh in India, with no upper limit.
• 24/7 Availability: Online RTGS is available all days, all year, for customer convenience. 

Benefits:

• Speed & Security: Instant and secure, reducing settlement risk.
• No Cheques/DDs: Replaces physical instruments for large payments.
• Transparency: Predictable fees and finality. 

How to Use:

Details Needed: Beneficiary name, account number, IFSC code, bank, branch, and amount. 

Offline: By filling out an application form at a bank branch.

NEFT (National Electronic Funds Transfer)
NEFT is an RBI-regulated system in India for transferring money between bank accounts digitally, available 24/7, allowing secure, cost-effective, and paperless fund movement using beneficiary details like name, account number, and IFSC code, processed in batches for seamless inter-bank transactions. 

How it works

• Initiation: You start a transfer via internet/mobile banking or at a bank branch.
• Details Needed: You provide the beneficiary’s name, account number, bank name, branch, and the 11-digit IFSC code.
• Processing: Transactions are processed in half-hourly batches by the NEFT system, with settlement occurring throughout the day.
• Confirmation:  Both sender and receiver get confirmation once the funds are credited

.Key Features

• Security: Secure, encrypted transactions with multi-layer authentication.
• No Upper Limit: No minimum or maximum limit on transaction amounts (though individual bank limits may apply).
• Eco-Friendly: Reduces paperwork.
• Wide Reach: Available across all NEFT-enabled banks in India. 

Charges

• Online: free (Nil) for mobile banking
• Branch: Nominal charges may apply for transactions initiated at a bank branch. 

What it’s used for

• Salary payments, EMI/bill payments.
• Personal and business payments.
• Government transactions.