20 July 2012
RTGS mean Real Time Gross Settlement for which banks will transfer funds in excess of Rs. 2 Lakhs to other bank accounts with in max 24 hours.
NEFT on the other hand is National Electronic Fund Transfer where funds will be transferred between two bank accounts which will take more time than RTGS.
20 July 2012
In addition to above I would like to add a few more points.
RTGS is faster payment and as soon as the customer submits the same is sent to the back end and then to the PI(participatory interface ) to RBI. The Banks would not wait for anything. RTGS is irrevocable and irreversable.
NEFT on the other hand the bank would club similar payments based on the amount, Bank payable etc and on hourly basis send the instructions to RBI for payment. NEFT would take time and it may also be remitted the next day. Here the banks sends the instrucitons on Batch process.
Now recently RBI has fixed a fee cap for the bank to charge the customer.
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