RTGS, NEFT charges of big banks in April 2024 compared: SBI, HDFC Bank, ICICI Bank, PNB
What is National Electronic Funds Transfer (NEFT)?
According to the ICICI Bank website, «The National Electronic Funds Transfer (NEFT) system is an electronic payment system that allows for direct one-to-one payments across the country. Using this service, you can electronically transfer funds from any bank branch to any individual who has an account with any other bank branch in the country that participates in the NEFT scheme. You can also use internet banking and mobile banking to make NEFT transfers.»
What is Real Time Gross Settlement (RTGS)?
According to the RBI, «The acronym 'RTGS' stands for Real Time Gross Settlement, which can be explained as a system where there is continuous and real-time settlement of fund-transfers, individually on a transaction by transaction basis (without netting). 'Real Time' means the processing of instructions at the time they are received; 'Gross Settlement' means that the settlement of funds transfer instructions occurs individually. The RTGS system is primarily meant for large value transactions. The minimum amount to be remitted through RTGS is Rs 2,00,000/- with no upper or maximum ceiling.
NEFT is an electronic fund transfer system in which the transactions received up to a particular time are processed in batches. Contrary to this, in RTGS, the transactions are processed continuously on a transaction-by-transaction basis throughout the day.
Details required to do RTGS, NEFT
The Remitter has to provide the following details:
- Amount to be remitted
- Beneficiary
