What is RTGS Net Transfer?

RTGS is an abbreviated form of “Real Time Gross Settlement” which is a funds transfer mechanism characterised by money transfer from one bank toanother in real time and on gross basis. It is regarded as the fastest possible moneytransfer system through the banking channel. The real time refers to the payment transaction happening at that moment without any waiting period. Thus, it implies that transactions aresettled as quickly as they are processed.

“Gross settlement” refers to the transaction that getssettled on one to one basis and it does not get clubbed with any other transaction. The transaction is regarded as final and irreversible as money transfer takes place in books of RBI. All the bank branches in India do not support RTGS transactions. As per latest data published by RBI, there are over 74,000 RTGS enabled bank branches in India. One can see the list of RTGS enabled bank branches on RBI website.

What is RTGS Net Transfer? Limit on RTGS transfer

The RTGS system is meant for high value transactions with minimum amount permissible for remittance is Rs 2 lakh. There is no upper ceiling forRTGStransactions. As a result of successful RTGS transaction, the beneficiary branches receive the amount in real time as soon as it is transferred by the remitting bank. Thebeneficiary bank is required to credit the transferred funds into the beneficiary’s account within two hours of receivingthe funds.

Timings of RTGS transfer

Customers can transfer funds through RTGS from 9.00 hoursto 16.30 hours on week days. The timing for Saturday is from 9.00 hours to 13.30 noon. Similarly timings for accepting the customer transactions for settlement at the RBI is between 9.00 hours to15.00 hours on week days and from 9.00 hours to 12.00 noon on Saturday.

The service window for inter-bank transactionsis open from 9.00 hours to 17.00 hours during week days and between 9.00 hours to 14.00hours on Saturdays.

Required Information

In order to transfer money by RTGS transfer, the remitting customer is required to produce the following information.

The IFSC code of the receiving branch

Remitting Customer’s Account number which is to be debited

Amount to be remitted

Name of the beneficiary bank

Name and Account number of the beneficiary customer

Sender to receiver information

The beneficiary customer can receive the IFSC code from his bank branch and it is also printed on the cheque leaf. Before the transaction, remitting customer can get IFSC code number and bank branch from the beneficiary. RBI has also made available the list of IFSC codes on its website.

Processing Charges

The following charges are applied for inward and outward transaction through RTGS.

Inward transactions – It is absolutely free and there are no charges applied

Outward transactions

2 lakh to 5 lakh – Not exceeding Rs 25 per transaction

Above 5 lakh – Not exceeding Rs 50 per transaction

What is NEFT Net Transfer?

NEFT is an abbreviated form of National Electronic Funds Transfer which is a nation-wide system of electronically fund transfer from any bank branch to any other bank branch in the country. It allows the fund transfer from any individual or firm to any other individual or firm across the country. In order to facilitate fund transfer between bank accounts of different banks branches, it is necessary that participating bank branches should be NEFT-enabled. Majority of the bank branches in the country are NEFT enabled with 74,680 branches out of 82,400 bank branches.

One can see the list of NEFT enabled bank branches in the country on the website of RBI at http://www.rbi.org.in/scripts/neft.aspx.

What is NEFT Net Transfer? Eligibility for NEFT Fund transfer

It is possible for Individuals, firms or corporates to transfer funds using NEFT if they have an account with NEFT enabled bank branch. In fact, individuals, firms or corporates without any bank account can also deposit cash at any NEFT-enabled branch along with necessary instructions for transferring funds using NEFT. To facilitate the walk in customers who do not have bank account but want to deposit cash in beneficiary account, a separate Transaction Code (No. 50) has been allocated in the NEFT system. These customers are required to furnish complete details including complete address, telephone number, etc.

In order to receive funds via NEFT, it is mandatory for a beneficiary including Individuals, firms or corporates; to maintain accounts with NEFT enabled bank branchin the country.

Limits of funds transfer

There are no minimum or maximum limit on the amount of funds to be transferred using NEFT.

The maximum limit for walk in customers under Indo-Nepal Remittance Facility SchemeisRs 49,999.


NEFT operates in hourly batches with 11 settlements takes place from 9 am to 7 pm on week days. On Saturdays, it operates five settlements from 9 am to 1 pm.

Pre-requisites for NEFT transaction

The pre-requisites for initiating funds transfer using NEFT are the following.

Both the remitting customer branch (originating) and beneficiary customer branch (destination) should be NEFT enabled branches

Beneficiary details required for completing NEFT transaction include account number, beneficiary name and account type.

Name and IFSC code of the beneficiary bank branch. In case of net banking customers, IFSC code automatically pops up once the destination bank and branch is selected.

Charges for NEFT transaction

Member banks participating in NEFT are not required to pay any service charges to RBI till 31 March 2011. Consequently, member banks have also pass on the benefit to their customers.

Inward transactions: There are no charges levied from beneficiariesat destination bank branches

Outward transactions: The charges applicable at originating bank branches are as follows:

Rs 1 lakh – not exceeding Rs 5 and service Tax

Rs 1 lakh – Rs 2 lakhs – not exceeding Rs 15 and service Tax

Above Rs 2 lakhs – not exceeding Rs 25 and service Tax

Security of Transaction

NEFT uses a very secure mode of transferring funds between bank branches. It also makes use of Public Key Infrastructure (PKI) technology for ensuring end-to-end security.