NEFT & RTGS in Internet Banking: Timing, Limitations and Differences

The full form of NEFT is National Electronic Fund Transfer. Whereas RTGS stands for Real-Time Gross Settlement. Read to know the advantages timings, limitations, and differences between these two mediums of fund transfer. You may also, download the NEFT sample form.

What is NEFT?

NEFT is a nationwide centralized payment system owned and operated by the Reserve Bank of India (RBI). Thus, Individuals, firms, and corporates maintaining accounts with any member bank can electronically transfer funds to any individual, firm, or corporate having an account with any other bank in the country.

image for neft and rtgs in banking

Form for NEFT Transfer

Below given is the sample format issued by the RBI. Thus, the applicant can make an application and include the details as per the format, and submit it to the bank for NEFT transfer. However, your bank may have the standard format to be used for NEFT transfer. Click and download the form in pdf file.

image for neft form

NEFT/RTGS Forms of Various Banks

RTGS form of HDFC bankDownload
NEFT form of Axis BankInstructions
RTGS form of Axis BankInstructions
SBI NEFT FormatInstructions
SBI RTGS Format Online Transfer Process
Yes Bank NEFT FormDownload
Yes Bank RTGS FormDownload | Instructions
Bank of Baroda Neft FormDownload
Bank of Baroda RTGS Form Download
ICICI Bank NEFT TransferOnline Steps
ICICI Bank RTGS Transfer Online Steps

Advantages of NEFT Transfer

NEFT system offers the following advantages for funds transfer or receipt:

  • works round the clock availability on all days of the year.
  • Near-real-time funds transfer to the beneficiary account and settlement in a secure manner.
  • Pan-India coverage through large network of branches of all types of banks.
  • Positive confirmation to the remitter by SMS / e-mail on credit to beneficiary account.
  • Penal interest provision for delay in credit or return of transactions.
  • No levy of charges by RBI from banks.
  • No charges to savings bank account customers for online NEFT transactions.
  • Besides funds transfer, You can use NEFT system for a variety of transactions including payment of credit card dues to the card issuing banks, payment of loan EMI, inward foreign exchange remittances, etc.
  • Available for one-way funds transfers from India to Nepal.

NEFT Charges

Here are the maximum charges that banks can charge from their customer for NEFT transactions are as follows:

a) W.E.F January 01, 2020, banks are directed not to levy any charges from their savings bank account holders for NEFT funds transfers initiated online.

b) Maximum charges which can be charged for outward transactions at the originating bank for other transactions –

  • For transactions up to ₹ 10,000 : not exceeding ₹ 2.50 (+ Applicable GST)
  • Fransactions above ₹ 10,000 up to ₹ 1 lakh: not exceeding ₹ 5 (+ Applicable GST)
  • For transactions above ₹ 1 lakh and up to ₹ 2 lakhs: not exceeding ₹ 15 (+ Applicable GST)
  • All Transactions above ₹ 2 lakhs: not exceeding ₹ 25 (+ Applicable GST)

How to make NEFT transfer?

Time needed: 15 minutes

NEFT Transfer through Internet Banking

  1. Login to your Bank Account

    “You must have the login id and password for net banking login

  2. Add the beneficiary

    Fill all in the required details of the beneficiary and complete the process.

  3. Select the “Inter-Bank Transfer” option

  4. Choose the transaction type as “NEFT”

  5. Enter the amount to be transferred.

  6. Accept the terms and conditions of the transfer

  7. Confirm the submission

What is RTGS?

RTGS is a type of system where there is the continuous and real-time settlement of fund transfers. This can be to an individual on a transaction-by-transaction basis. The term ‘Real Time’ means the processing of instructions at the time of theirs receipt. whereas ‘Gross Settlement’ means that the settlement of funds transfer instructions occurs individually.

Timings for NEFT and RTGS

For NEFT transfer, there is no time limit. Therefore, the NEFT system is available round the clock and throughout the year on all days, i.e., on a 24×7 x 365 basis. However, the NEFT presently operates in batches at half-hourly intervals throughout the day.

Similarly, the RTGS is also available 24×7 x 365 with effect from December 14, 2020.

Difference between NEFT and RTGS

The NEFT is an electronic fund transfer system. In this method, the system process the transaction receipts in batches up to a particular time. Whereas, in RTGS, the transactions get process continuously on a transaction-by-transaction basis throughout the day.

RTGS Charges

From 1st July 2019, the Reserve Bank has waived the processing charges levied for RTGS transactions. Thus, the banks may pass on the benefit to their customers.

Here are the RTGS charges:

a) Inward transactions – Free, no charge to be levied.

b) Outward transactions – ₹ 2,00,000/- to 5,00,000/- : not exceeding ₹ 24.50/-; (exclusive of tax, if any)

Above ₹ 5,00,000/-: not exceeding ₹ 49.50/-. (exclusive of tax, if any)

Further, the banks may decide to charge a lower rate but cannot charge more than the rates prescribed by RBI.

Monitory Transfer Limitations

For NEFT transfer, there is no limit from the RBI. However, the banks may place amount limits based on their own risk perception with the approval of its Board.

Whereas the RTGS system primarily exists for large value transactions. Therefore, the minimum amount to be transferred through RTGS is ₹ 2,00,000/- with no upper or maximum amount.

Frequently Asked Questions on NEFT And RTGS

How much time does it take for NEFT transfer?

Two hours from the batch settlement

What is IFSC stands for in Net banking?

Indian Financial System Code

Which details do I need to have for the NEFT transfer?

Beneficiary’s Name, Branch Name, Bank Name, Account Type, Account No, and Branch IFSC

What is the UTR number in RTGS in Net banking?

Unique Transaction Reference. It is a 22 character unique code used to identify a transaction in the RTGS system

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