How is NEFT different from RTGS and EFT?
Dear Friend RTGS stands for “Real Time Gross Settlement” – It enables transfer of money in real time. NEFT stands for “National Electronic Funds Transfer” which is an online system of transferring funds between financial institutions RTGS payment transaction will notinvolve any waiting period which is the true meaning of “real” time settlement Under normal circumstances the transactions are settled as soon as they are processed by remitting bank. The transaction is settled on one to one basis. Once processed the transactions are irrevocable as the money transfer occurs in RBI records NEFT functions on a deferred net settlement basis where transactions are completed in batches at specific times. These settlement takes place at a particular point of time and all transactions are held up till that time RTGS is for amounts equal or greater than Rs. 2 lacs while NEFT is used for transactions below Rs. 2 lacs. Howeverthere is no upper limit for either RTGS or NEFT ELECTRONIC FUND TRANSFER EXCHANGE OF MONEY FROM ONE ACCOUNT TO ANOTHER THROUGH COMPUTER ETF refers to the computer-based system used to perform financial transactions electronically. Is a system whereby anyone who wants to make payment to another person/company etc. can approach his bank and make cash payment or give instructions/authorization to transfer funds directly from his own account to the bank account of the receiver/beneficiary. Cardholder-initiated transactions, using a payment card such as a credit ordebit card. Direct deposit payment initiated by the payer. Direct debit payments, sometimes called electronic checks, for which a business debits the consumer's bank accounts for payment for goods or services. Wire transfer via an international banking network such as SWIFT. Electronic bill payment in online banking, which may be delivered by EFT or paper check. Transactions involving stored value of electronic money, possibly in a private currency.
Dear Prity, So far as your query is concerned that How is NEFT different from RTGS and EFT? Kindly be informed that NEFT is an electronic payment system to transfer funds from any part of country to any other part of the country and works on net settlement basis, unlike RTGS that works on gross settlement basis. While EFT is restricted to the fifteen centers (only where RBI offices are located), NEFT is a nation-wide electronic fund transfer system. Hope you have got the answer/information on your query that How is NEFT different from RTGS and EFT? Hope that the above information is useful to you !!! Thanks & Regards