What is NEFT code and RTGS code and difference between them

What is NEFT (National Fund Transfer and Real time Gross Settlement)

What is NEFT (National Fund Transfer and Real time Gross Settlement jobisearchNational Electronic Funds Transfer is an Indian system of electronic money transfer in one bank to other bank.(NEFT) National Electronic Funds Transfer is an electronic payment transfer system.

Under this Scheme, individuals can electronically fund transfer from one bank branch to any to any other bank. This system has been introduced by the RBI (Reserve Bank of India). In the field of India’s banking the funds transfer system is good for clearing.

What is (RTGS) Real Time Gross Settlement

RTGS full form is “Real Time Gross Settlement”. RTGS system is continuous (real-time) settlement of funds transfers separately on an order by order basis. There is no waiting period for it.

Differences between NEFT and RTGS

  • NEFT is types of the national electronic fund transfer system. This is operating by DNS deferred net settlement. NEFT is Settlement of bank transactions.
  • RTGS in each transaction process is continuing. This is not some kind of waiting period.
  • NEFT from any part of the country from any part of the other country to money transfer is an electronic payment process.
  • RTGS is a real time gross settlement.
  • NEFT is a net settlement system.
  • Minimum amount of transmitted in RTGS is Rs 2 lakh rupees.
  • In NEFT has not set an amount of transactions.

Question 1. What is RTGS?

Answer 1. RTGS is real time gross settlement.

Question 2. What is NEFT?

Answer 2. NEFT is an Indian system of electronic money transfer in one bank to other bank.

Question 3. What is the difference between NEFT and RTGS?

Answer 3. NEFT operates on a deferred net Settlement and there is no waiting period in RTGS.

Question 4. In the minimum and maximum transactions amount of RTGS transactions?

Answer 4.  The minimum amount remitted through RTGS is 2 lakh rupees. There is no upper ceiling for RTGS transactions.