RTGS (Real-Time Gross Settlement) and NEFT (National Electronic Funds Transfer) are two electronic funds transfer systems used in India for transferring funds between bank accounts. They offer convenient and efficient ways to send money, but there are some key differences between them.

RTGS

• Real-time: Transactions are settled in real-time, meaning the funds are transferred instantly.
• Large Amounts: Primarily used for transferring large amounts of money, typically above ₹2 lakhs.
• Limited Banking Hours: Transactions can be initiated during specific banking hours.
• Higher Charges: Generally, RTGS transactions involve higher fees compared to NEFT.

NEFT

• Batch Processing: Transactions are settled in batches throughout the day.
• Smaller Amounts: Suitable for transferring smaller amounts of money, up to ₹2 lakhs.
• Extended Banking Hours: Transactions can be initiated during extended banking hours.
• Lower Charges: NEFT transactions typically have lower fees than RTGS.