RTGS - Real Time Gross Settlement.
NEFT - National Electronics Funds Transfer System.
REAL TIME GROSS SETTLEMENT
1. RTGS system is a funds transfer mechanism where transfer of money takes place
from one bank to another on a ‘real time’ and on ‘gross basis’.
2. This is the fastest possible money transfer system through the banking channel.
3. Settlement in 'real time' means payment transaction is not subjected to any waiting
period. The transactions are settled as soon as they are processed.
4. 'Gross settlement' means the transaction is settled on one to one basis without
bunching with any other transaction.
5. Considering that money transfer takes place in the books of the Reserve Bank of
India, the payment is taken as final and irrevocable .
NATIONAL ELECTRONICS FUND TRANSFER SYSTEM
1. Funds are transferred to the credit account with the other participating Bank using
RBI's NEFT service.
2. RBI acts as the service provider and transfers the credit to the other bank's account.
3. NEFT operate on a deferred net settlement (DNS) basis which settles transactions in
batches.
4. In DNS, the settlement takes place at a particular point of time. All transactions are
held up till that time.
Why RTGS/NEFT
1. Lower cost of transaction of RTGS/NEFT as compared to cost of transaction and
remmitance through draft
2. Draft Issue to Payment – long process, cancellation, duplicate draft issue,
revalidation, IOR issues, frauds, Staff accountability
3. Customer Benefit – Immediate credit
4. Low transaction time, no printing, shorten the queues
5. Drafts will be phased out in the coming years.
RTGS/NEFT Service Availability
RTGS Transactions will be sent to RBI Based on the following Schedule:
Day Start Time End Time
Monday to Friday 9.00 hrs 16.30 hrs
Saturday 9.00 hrs 13.30 hrs
NEFT Transactions will be sent to RBI Based on the following Schedule
Day Start Time End Time
Monday to Friday 8.00 hrs 16.00 hrs
Saturday 8.00 hrs 11.30 hrs
1. For a funds transfer to go through RTGS/NEFT, both the sending bank branch and the
receiving bank branch would have to be RTGS/NEFT enabled
2. In rare cases of system failure at RBI/Banks respective softwares, manual
intervention is required to clear the Blocked funds
3. NEFT transactions are settled in batches based on the following timings:
-11 settlements on weekdays - at 09:00, 11:00, 12:00, 13:00, 15:00 and 17:00 hrs.
-5 settlements on Saturdays - at 09:00, 11:00 and 12:00 hrs.
Minimum/Maximum Amount For RTGS/NEFT Transactions:
Transactions Minimum Maximum
RTGS Rs. 2 Lakh No Limit
NEFT No Limit No Limit
Processing Fee/ Service Charge For RTGS/NEFT Transactions:
Transactions Minimum Maximum
RTGS From 2 Lakh upto 5 Lakh Not Exceeding Rs. 30/-
5 Lakh & Above Not Exceeding Rs. 55/-
NEFT upto Rs. 1 Lakh Rs. 5/-
Rs. 1 Lakh to 2 Lakh Rs. 15/- Maximum
Above 2 Lakh Rs. 25/- Maximum
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