RTGS and NEFT are two of the most common payment systems used in India. While they are both designed for transferring money, there are some key differences between them. This blog post will discuss those differences and help you understand which system is right for your needs.
What is RTGS?
RTGS is the acronym for Real-Time Gross Settlement. RTGS is a system designed for the instantaneous transfer of funds between two banks on a real-time and gross basis. The RTGS system is primarily used for high-value transactions that need immediate clearings, such as interbank payments or securities settlements. Because RTGS transactions are settled in real-time, they are considered final and irrevocable. As a result, RTGS can be an important tool for managing risk in the financial system. RTGS systems are operated by central banks or other authorities and are usually available only to financial institutions that are members of the system. In some countries, RTGS systems are also available to retail customers.
What is NEFT?
NEFT is a system that enables the quick and easy transfer of funds between banks. NEFT stands for National Electronic Funds Transfer, and it is managed by the Reserve Bank of India. NEFT is available 24 hours a day, and it can be used to transfer funds of up to Rs. 2 lakhs. NEFT is a simple, convenient, and safe way to transfer funds, and it has become a popular choice for many people.
Difference between RTGS and NEFT
RTGS and NEFT are two of the most popular modes of transferring funds in India. RTGS is an acronym for Real-Time Gross Settlement, while NEFT stands for National Electronic Funds Transfer. Both RTGS and NEFT allow customers to transfer funds electronically between banks. However, there are some key differences between the two systems. RTGS is typically used for large-value transactions, while NEFT is used for smaller amounts. RTGS payments are also processed in real-time, while NEFT payments are processed in batches. As a result, RTGS is generally considered to be more expensive than NEFT. However, both RTGS and NEFT are safe and efficient ways to transfer funds electronically.
Conclusion
In this blog post, we’ve outlined the differences between RTGS and NEFT. We hope that this information will help you decide which payment system is best for your needs.
