RTGS vs NEFT: Key Differences Explained (2026)
RTGS and NEFT are two popular bank transfer methods in India. While both are safe and RBI-regulated, they are used for different purposes based on amount, speed, and urgency.
Let’s break it down in simple terms.
Quick Comparison: RTGS vs NEFT
| Feature | RTGS | NEFT |
|---|---|---|
| Full Form | Real Time Gross Settlement | National Electronic Funds Transfer |
| Minimum Amount | ₹2,00,000 | No minimum limit |
| Maximum Amount | No upper limit | No upper limit |
| Speed | Instant / Real-time | Usually within 2 hours |
| Settlement Type | One-to-one (real time) | Batch-wise |
| Availability | 24×7 (online) | 24×7 (online) |
| Best For | High-value, urgent transfers | Small to medium transfers |
| Charges (Online) | Usually free | Usually free |
What Is RTGS?
RTGS is used when you want to transfer a large amount quickly.
Key Points:
- Minimum transfer: ₹2 lakh
- Money is credited instantly
- Ideal for property payments, business deals, or urgent transfers
- Available via net banking, mobile banking, and branch
What Is NEFT?
NEFT is best suited for regular or smaller transfers.
Key Points:
- No minimum transfer amount
- Amount is credited in batches
- Suitable for salary payments, bill payments, and daily transfers
- Available 24×7, including weekends & holidays
Which Is Better: RTGS or NEFT?
Choose based on your need:
- Use RTGS if:
- Amount is ₹2 lakh or more
- Payment is urgent
- Use NEFT if:
- Amount is below ₹2 lakh
- Speed is not critical
For most everyday transfers, NEFT is enough.
Charges: RTGS vs NEFT
- Online (NetBanking / Mobile Banking):
RTGS & NEFT are free in most banks - Branch transfers:
Charges may apply and vary by bank & amount
Always check your bank’s latest charge list for confirmation.
Common Problems & Troubleshooting
RTGS/NEFT failed but amount debited?
- Amount is usually auto-reversed within 2–3 working days
Wrong account number entered?
- Contact your bank immediately
- Resolution depends on beneficiary bank response
Security Tips
- Double-check account number & IFSC
- Avoid public Wi-Fi while transferring money
- Save transaction reference (UTR) number
- Use official bank apps only
FAQs: RTGS vs NEFT
Is RTGS faster than NEFT?
A. Yes. RTGS is real-time, while NEFT is batch-based.
Can NEFT be used for ₹5 lakh transfer?
A. Yes. There is no maximum limit on NEFT.
Are RTGS and NEFT available on holidays?
A. Yes. Online RTGS and NEFT work 24×7.
Conclusion
- RTGS = Large amount + urgent transfer
- NEFT = Regular transfers + flexibility
Both are safe, RBI-regulated, and widely used across Indian banks.
