NEFT and RTGS – A detailed Guide

Lets try to understand what is NEFT and RTGS and what is the difference between them. NEFT and RTGS are two main mechanisms to transfer money from one bank to another bank in India. Transferring money between two accounts in same bank is pretty straight forword and its a internal matter of the bank, it does not have to deal with other banks and their protocols, however when one bank wants to send the money to another bank in India, there is a defined mechanism it has to be done and hence NEFT and RTGS comes into picture. Both these systems are maintained by Reserve Bank of India. Lets understand both of these

NEFT – National Electronic Fund Transfer

NEFT full form is National Electronic Fund Transfer, and its a system of transfer between two banks on net settlement basis. Which means that each individual transfer from one account to another account is not settled or processed at that same moment, its done in batches . A lot of transactions are settled in one go in each batches. Presently, NEFT services are available from 8:00 am to 6:30 pm on weekdays (Mon – Fri) and from 8:00 am – 12:30 pm on Saturday.

Any NEFT Transfer done between 8 am – 5 pm generally gets settled on the same day, but if you deposit the money after 5 pm, then that will be settled the next working day. In case of Saturday, any money deposited between 8 am – 12 noon can be expected to reach the beneficiary account the same day.

NEFT Transfer Example

For example lets say Ajay has ICICI Bank account and Robert has a bank account in HDFC bank , Now Ajay deposits Rs 10,000 in Vijay account through NEFT transfer at 10:30 am . The money will be then taken out from Ajay’s ICICI Account and will be sent to Vijay’s HDFC bank the same day, then HDFC bank will credit Vijay’s bank account. In case money can not be transferred to the target account (beneficiary account) , the money will be credited back to the source branch within 2 hours of the batch in which it was processed.

RTGS – Real Time Gross Settlement

RTGS full form is Real Time Gross Settlement and its a system of money transfer between two banks in real time basis, which means the moment one bank account transfer the money to another bank account, its settled at that time itself on real time basis between the banks, but the beneficiary bank has to make the final settlement to the bank account within two hours of getting the money. RTGS is the fastest possible money transfer between two banks in India through a secure channel.

Let me give an example, lets say Ajay has a SBI Bank account and Vijay has an Axis Bank account, Ajay transfers Rs 5 lacs to Vijay’s account  through RTGS transfer, SBI bank instantly transfers Rs 5 lac to Axis Bank, now Axis bank has 2 more hours to deposit it in Vijay’s account . Hence in worst case even with RTGS transfer there can be delay of 2 hours.

NEFT and RTGS Timings

NEFT and RTGS Charges

NEFT and RTGS transfer charges depends on the Bank. RBI has guidelines for the maximum fees which can be charged, but it finally depends on the bank in question. Note that NEFT and RTGS charges, varies depending on the amount transferred and the timings when its done. While NEFT charges depends purely on the amount transfered, RTGS charges depends on the amount transferred as well as the timings of the day when its done . A RTGS transfer early will cost a little less charges. Note that, Service tax is also applicable to the charges. Below are the charges shows for NEFT and RTGS for retail banking (not for institutional banking)
NEFT and RTGS Charges

Information required to make an RTGS & NEFT payment?

For making a payment through NEFT/RTGS, following information has to be furnished.

Note : MICR code is generally not required for NEFT or RTGS transfer

Points to Note

Difference Between NEFT and RTGS

Finally let me list down all the differences between NEFT and RTGS in a table, so its easy for you to understand the conclude finally.

Criteria NEFT RTGS (Retail)
Settlement Done in batches (Slower) Real time (Faster)
Full Form National Electronic Fund Transfer Real Time Gross Settlement
Timings on Mon – Fri 8:00 am – 6:30 pm 9:00 am – 4:30 pm
Timings on Saturday 8:00 am – 12:30 pm 9:00 am – 1:30 pm
Minimum amount of money transfer limit No Minimum 2 lacs
Maximum amount of money transfer limit No Limit No Limit
When does the Credit Happen in beneficiary account Happens in the hourly batch Between Banks Real time between Banks
Maximum Charges as per RBI Upto 10,000 – Rs 2.5
from 10,001 – 1 lac – Rs 5
from 1 – 2 lacs – Rs 15
Above 2 lacs – Rs 25
Rs 25-30 (Upto 2 – 5 lacs)
Rs 50-55 (Above 5 lacs)
(Lower charges for first half of day)
Suitable for Small Money Transfer Large Money Transfer


Are you now clear about the difference between NEFT and RTGS and their transfer charges?

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By Manish Chauhan on September 3, 2012 · Posted in Banking

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214 Comments | Post Comment

Jassi says:

Thanks Manish. I wasnt aware about RTGS till now :)

Rgds,
Jassi

Posted on September 3rd, 2012

Pushpender says:

RBI website mentions lower limit of RTGS 2 lakh and maximum limit not bound.

Posted on September 3rd, 2012

Rakesh says:

Manish,

Much appreciated, good stuff. Did not know about RTGS.
In the survey above “Why do you want to quit your job ?”
You could add an option for Satisfied with current Job / Not looking for change

Posted on September 3rd, 2012

Vasanth says:

Manish,

Useful article!! You have betrayed Robert in your NEFT transfer example :-)

Also recently i’m hearing a new way of transferring money which is called IMPS (interbank Mobile Payment System). If you can provide details about that as well it would be great !! Heard it is instant money transfer method. Thank in advance

Regards,
Vasanth

Posted on September 3rd, 2012

rajiv Singh says:

Hi Manish,

In section Difference Between NEFT and RTGS
The RTGS column shows the min and max amount of money transfer possible as 5lacs, But in maximum charges as per RBI row the amount is mentioned as 2lacs to above 5 lacs. Which is correct ? ?

Posted on September 3rd, 2012

Prabhat says:

Good Article on Transactions.

Posted on September 3rd, 2012

Karan Batra - Tax Consultant says:

Hi Manish

Thanks for this useful post. Could you please through some light on the MICR Code as well…

Posted on September 3rd, 2012

sangram says:

Manish,
Nice article as always.
I think in the difference table, “Minimum amount of money transfer limit” in case of RTGS will be 2 Lacs and not the 5 Lacs as mentioned.

Posted on September 3rd, 2012

Indrajeet Singh says:

In your blog min & max limits for RTGS are correct, but in the Jogo investor post minimum & Maximum limits written are 5 lacs, please correct that, otherwise a good article.
with regards
Indrajeet Singh

Posted on September 3rd, 2012

Bhavi says:

Heya!!

The information on RTGS min & max amount for transfer seems to wrong. The min amt is above 2Lacs and max there is no limit. Could you please verify the same?

Posted on September 3rd, 2012

Anand says:

Is MMID related to this? Manish, this post would be incomplete without IMPS. Please include that too.

Posted on September 3rd, 2012

Madhav says:

Dear Manish

There are few points need to be changed in your article:

a) About Bank Charges
RBI has revised the maximum charges that can be charged by banks as per the recent circular – RBI/2012-13/131 DPSS CO (EPPD) /98/04.03.01/2012-13
July 13, 2012 – which is upto Rs. 10,000 – it is Rs. 2.50 .. and maximum is Rs. 25 (+service tax).

b) About maximum Limit – RTGS there is no maximum limit prescribed, companies will in generally do in crores as well.. the limits if any is prescribed by the respective banks depending on the account type (Individual/ Partnership etc.,) – there is no limit as per the RBI circular/ to companies.

c) There is no maximum limit of NEFT – again this can be done upto any amount

(In companies – we use to transfer under RTGS/NEFT in crores)
Any limits prescribed would be done by the bank depending on the nature of account – Savings/Individual etc., as per rules there are no limits under RTGS/NEFT

Posted on September 3rd, 2012

Vasanth says:

Yes Anand!! MMID is related to IMPS only..

Posted on September 3rd, 2012

Naveen says:

In my ICICI bank account, I have noticed that they don’t charge me anything for NEFT transfers irrespective of the amount and bank – meaning even if I transfer it to SBI…. so I think it’s based on account type as well ? (Mine is a Privilege banking acc with ICICI)

Posted on September 3rd, 2012

Harsh says:

Excellent refresher. Despite NEFT and RGTS facility many people still use cheques and others mode of money transfer.

Having extensively used both RGTS and NEFT, there is one draw back that i would like to mention – whatever time frame they say there is no assurance that times lines will be followed by banks in NEFT, while in RGTS it works during a limited time frame and amount need to be more than 2 lakhs.

Recently i issued a cheque from one of my account and did a NEFT transfer to build balance but NEFT failed to do the job in 48 hours, in the middle of night i started searching for how to do a instant transfer and then I got to know of IMPS. Registration happned instantly in matter of minutes and shockingly money transfer happened in micro seconds :) even faster than a google search. But again IMPS i thing is limited upto 49K, not sure on that.

Thanks

Posted on September 4th, 2012

manyam says:

Yes, seems the charges are varies for NEFT is bank to bank and also may be related account type as well..

I have ICICI NRE Account they are charging min 2.5 INR+ tax upto 10K and 5+tax INR for more than that..

Bank of Baroda giving NEFT free of cost (earlier they used to charge 6+ INR)

INGVysya Bank not charging but they will surprise us with hefty SMS charges on NRI mobile number.

Btw, I noticed earlier RTGS will be initiated at 1Lakh+ transactions only, now it is 2Lakh+ transactions.

Thanks

Posted on September 4th, 2012

khalid says:

Very nice post Manish, I was very much confuse about these two. All the details in one place.
Thanks for sharing

Posted on September 4th, 2012

Jeetu says:

Hi Manish…
As I am using Netbanking for most of my banking transactions, so this was not new however, after reading few of the comments I found many people are not aware about the same (NEFT & RTGS).

However, there is one more way of making transactions, introduced may be a year back or so… by NPCI known as IMPS…

Its phenomenal feature in Mobile Banking feature, where in user can transfer funds with in fraction of seconds!!!

No need to have other person’s Acc. Number, MICR no. etc. If you know MMID and mobile number, you can do the transactions

Posted on September 4th, 2012

Arun Rathi says:

Agreed!! Lots of ppl dont know about IMPS which is really a good thing (may not be good for ppl who frequently keep changing their mobile numbers :)

Posted on September 4th, 2012

Anand says:

Dear Manish

Thanks for the article. It was quite informative.Hope to see information on IMPS as well.

Thanks again for sharing.

Posted on September 4th, 2012

keshavnad says:

Hey manish may be not the right place to ask but since it’s your current article. I would request you to through some light on NPS and on points to deal with bank while reducing rate (few could be CIBIL, Regular payment of loan, IT return) . Basically I mean what are the tricks that bank may use for not reducing lending rates and my objection to those..
thanks…

Posted on September 4th, 2012

Madhav says:

Banks have discretionary to waive the charges. RBI circular is restricting the maximum what they can collect. All the privilege bank accounts/salary accounts etc., in will enjoy such facilities.

Posted on September 5th, 2012

Manish Chauhan says:

Not reducing rates for what ? For loans? they have to do it whenever RBI reduces it

Posted on September 5th, 2012

Manish Chauhan says:

Will do a seperate post on that

Posted on September 5th, 2012

Manish Chauhan says:

Yea .. will do a seperate post on that soon .

Posted on September 5th, 2012

Manish Chauhan says:

Thanks Khalid

Posted on September 5th, 2012

Manish Chauhan says:

Thanks for your comment .

Posted on September 5th, 2012

Manish Chauhan says:

Harsh

Thanks for that information and your sharing of experience. Will do a separate post on IMPS soon !

Posted on September 5th, 2012

Manish Chauhan says:

Even mine is previleage , but they charge me for NEFT . Now sure why tehy are not charging you , did you check with the customer care on this ?

Posted on September 5th, 2012

Manish Chauhan says:

Thanks Madhav

these are latest updates I guess, I changed them in the article, I was relying on SBI website data which was old . Thanks

Posted on September 5th, 2012

Manish Chauhan says:

Yes MMID is related to IMPS . Will do a seperate post on this very soon

Posted on September 5th, 2012

Manish Chauhan says:

yes, I had made the mistake, updated the article now

Posted on September 5th, 2012

Manish Chauhan says:

Corrected !

Posted on September 5th, 2012

Manish Chauhan says:

Corrected

Posted on September 5th, 2012

Manish Chauhan says:

Will do a post on that also sometime , for now you can ask it on our forum if you want urgent answers : http://www.jagoinvestor.com/forum/

Posted on September 5th, 2012

Naveen says:

I think I shouldn’t… else they may start from now on :)) … but I guess you should check with them why you are being charged even though your acc is salary nd privilege acc.

Posted on September 5th, 2012

Manish Chauhan says:

Thanks Prabhat

Posted on September 5th, 2012

Manish Chauhan says:

No that was wrong , I have updated with right information now

Posted on September 5th, 2012

Manish Chauhan says:

Will update an article on IMPS very soon !

Posted on September 5th, 2012

Manish Chauhan says:

The survey is only for those who want to quit :)

Posted on September 5th, 2012

Manish Chauhan says:

Corrected already

Posted on September 5th, 2012

Abhijit says:

Thanks Manish for another good article. Your book “Jago Investor” is also a very good book for the beginners to start with their financial planning.

About NEFT-
I am doing NEFT regularly from my Standard Chartered Bank & also from my ICICI Banks but I am sure both the banks are not charging me anything for this service fortunately.

Good for me!! :)

Posted on September 6th, 2012

keshavnad says:

Say for e.g. I have loan with ING of 20lakhs and bank is charging me 12.5% whereas if I go to other bank I find the rates to be around 10.5%-11%. My teaser loan got converted into floating last month. Now when I go as new customer ING is charging 11%. So how should I deal with the bank to get my interest rate lower.
I have been paying my all EMIs regularly made a part payment of 1lakh also.
So what are other points that I can put more stress on.

Posted on September 6th, 2012

RD says:

Very informative article. I came to know abt RTGS when i had to transfer a large amt. Its nice feature.
Waiting for article on IMPS..

Posted on September 6th, 2012

RD says:

I am also having account in ICICI bank. Its previleged account and they dont charge me anything for NEFT :).

Posted on September 6th, 2012

Manish Chauhan says:

I need to check with my bank why they charge me :) . Thanks for pointing out !

Posted on September 8th, 2012

Manish Chauhan says:

Good to hear that .. will do an article on IMPS soon

Posted on September 8th, 2012

Manish Chauhan says:

You can ask them why they have not lowered it as per the RBI notification .

Posted on September 8th, 2012

Manish Chauhan says:

Good to hear that :) .. Also glad to know that you liked my book , Would you be willing to write a review about the book on flipkart ?

Posted on September 8th, 2012

Ashutosh says:

Dear Manish
Thanks for this info. I am not aware such transfer till date.

Posted on September 9th, 2012

Santosh Prasad says:

I have a salary account with ICICI Bank and they do not charge anything for NEFT.

Posted on September 9th, 2012

Manish Chauhan says:

Thanks for sharing that !

Posted on September 10th, 2012

Manish Chauhan says:

Did you try it Ashutosh ?

Posted on September 10th, 2012

Brajesh says:

http://thetelecomarena.blogspot.in/2012/09/imps-vs-neftrtgs.html

Advantages of IMPS over NEFT and RTGS.

Posted on September 12th, 2012

chandan says:

Hi manish… agree with you… you have old data i guess… I have INDUSIND bank account and mostly i rely on NEFT AND RTGS for transfer money ,my bank do not charge a penny for the same since i started using this facility for last 6 months.

Posted on September 12th, 2012

vivek says:

Thanks Manish for the clarification.

Posted on September 13th, 2012

Manish Chauhan says:

Thanks for that link , will write about it soon

Posted on September 14th, 2012

veera says:

Thanks Manish for the info.

Posted on September 25th, 2012

Manish Chauhan says:

Welcome

Posted on September 26th, 2012

Sandip Sabnis says:

Nice info as always….Thanks….

What is IBFT – Inter Bank Fund Transfer?
Standard Chartered bank use this term. They have not charged me for transfer to other banks like AXIS, ICICI, SBI. I transferred 1000 to 2L.
I have privilege ICICI account but they charge me on transfer.

Posted on September 27th, 2012

Manish Chauhan says:

Ideally they should not . I have not heard about IBFT .. Talk to customer care . I think its specific to the company http://www.standardchartered.co.in/personal/ways-to-bank/en/inter-bank-fund-transfer.html

Posted on September 29th, 2012

A.Sundaram says:

Dear Manish,
Did you get the clarification from ICICI Bk as to why they are charging you for the NEFT?
I understand that the charges get debited by the system and you need to specifically take up the matter with ICICI Bk to reverse the same.Of course,reversal of the charge is not a right but a consideration extended by the Bank for its valued customers.
Would appreciate your inputs.Thanks.

Posted on October 1st, 2012

Manish Chauhan says:

Havent checked that ..will do it

Posted on October 2nd, 2012

A.Sundaram says:

Please do keep us updated.Thanks.

Posted on October 2nd, 2012

venu says:

i understand better

Posted on November 20th, 2012

Mulay Narendra says:

Thanks Manish for another good article. I am regularly reading your article. keep it up

Posted on November 22nd, 2012

Ram says:

thanks in fact it is very good information even i do netbanking and RTGS on regular basis. this article give me more insight in their process.

Posted on November 22nd, 2012

Manish Chauhan says:

Thanks Ram !

Posted on November 25th, 2012

Manish Chauhan says:

Thanks Mulay !

Posted on November 25th, 2012

chandresh says:

all things are explained in order , after searching all the details about (NEFT & RTGS) i saw your explained information regarding neft & rtgs.
it so much good …..
thanks for help me to understand about the terms of neft & rtgs

Posted on December 7th, 2012

Manish Chauhan says:

Thanks Chandresh !

Posted on December 11th, 2012

deepak kumar says:

thank u very much for help me to understand about neft&rtgs

Posted on December 22nd, 2012

Manish Chauhan says:

Thanks Deepak !

Posted on December 24th, 2012

Sudheer says:

Very well written article. Informative and cognitive !

Posted on December 28th, 2012

Manish Chauhan says:

Thanks !

Posted on December 29th, 2012

Nilesh Singh says:

Thanks Manish for clearing my concepts about NEFT & RTGS. I am surprised to see that all the banks have such a proper settlement-systems between them..

Posted on January 10th, 2013

PRAVIN GUPTA says:

THANKS MANISH COZ U PRESENTED IT SO CLEARLY DAT ANY ONE CAN EASILY UNDERSTAND WHAT IT EXACTLY MEANS…………………..GOOD JOB

Posted on January 15th, 2013

pvd says:

Thanks Manish. Good Job.

Posted on January 16th, 2013

Dharmendra kumar Pandit says:

I’m satisfied from the information difference between NEFT & RTGS……

Posted on January 16th, 2013

Manish Chauhan says:

Thanks :)

Posted on January 18th, 2013

Manish Chauhan says:

Thanks

Posted on January 18th, 2013

maravarman says:

NICE CLARIFICATION BETWEEN RTGS AND NEFT THANK YOU

Posted on January 19th, 2013

Manish Chauhan says:

Welcome

Posted on January 19th, 2013

srinivasu says:

it’s very nice explanation.

Posted on January 20th, 2013

Manish Chauhan says:

Thanks

Posted on January 22nd, 2013

Vishal Shah says:

If by mistake, instead of RTGS I proceed with an NEFT transfer for a higher value, will it be a problem?

Posted on January 23rd, 2013

Manish Chauhan says:

It should not be an issue, either your money will come back or the transaction will take place !

Posted on January 24th, 2013

raj says:

NEFT&RTGS explanation is very nice.but i have small doubt NEFT&RTGS transaction amount Deposited in bank by cash or cheque

Posted on January 29th, 2013

Manish Chauhan says:

Its online!

Posted on January 30th, 2013

Sid says:

Manish,

Is NEFT only online or can be done in banks as well?

I was being asked for a UTR (Unique Transaction Reference). I did a NEFT online transfer from ICICI to Central Bank of India and it generated a Transaction reference number (TR).

Is TR same as UTR for ICICI? ICICI call center (3 representatives) and one branch told me yes while another one told me that UTR will be generated only if I did a NEFT in an offline mode i.e. via the bank.

Can the transaction reference be used?

Thanks
Sid

Posted on January 31st, 2013

Sridevi MuraliKrishna says:

what about the cancellation procedure..? can you throw some light on that please..
also i think this NEFT/RTGS process should go through RBI. please correct me if am wrong

Posted on February 4th, 2013

Manish Chauhan says:

Cancellation for what ? Also process should go through RBI ? Why ?

Posted on February 6th, 2013

dhiru vala says:

hi manish,
i am new here for NEFT but my requirement is same here.
i need to do NEFT FOR 15 TO 20 RANDOM BENEFICIARIES DAILY. here is problem that i can add only one beneficiaries in day with sbi. i am working in ngo and we are helping worker for baking facilities as there are from out state and they need to send money to their families. now a days we have to go for deposit their money to each bank in which they have accounts in their aria like SBI,AXIS,PANJAB NATIONAL BANK ETC…. lost of. is there any better way for to resolved this problem? using internet banking?

thank in advance

Posted on February 7th, 2013

Manish Chauhan says:

I am not sure on these terms like UTR and or TR , but NEFT can be done online also, you can deposit the money to some account using NEFT offline.

Posted on February 7th, 2013

prashant says:

can i do rgts or neft from any branch of my bank or i have to do it from my source branch?

Posted on February 8th, 2013

Nikhil sharma says:

Thanks manish…
your article is really helpful for me. Its a well written article.. gud job..

Posted on February 9th, 2013

Manish Chauhan says:

Thanks

Posted on February 11th, 2013

Manish Chauhan says:

You can do it from anywhere !

Posted on February 11th, 2013

ROHIT ARORA says:

FIRST OF ALL THANKS MR. MANISH I HAD BIT DOUBT OF FULL FORM OF RTGS/NEFT BUT UR DETAILED GUIDE HELP ME OUT OF THIS PROBLEM EVEN BY UR GUIDE LOTS OF ANOTHER THINGS I HAVE LEARNT,

THANKS AGIAN & WARM REGARD.

Posted on February 13th, 2013

Manish Chauhan says:

Good to hear that Rohit

Posted on February 18th, 2013

Govind Gupta says:

My A/c have in SBI Bhopal (MP)and my Friend have a/c in SBI Babaru ( UP)

we can transfer the fund from Babaru to Bhopal thru Bank Babaru branch by NEFT

Posted on February 22nd, 2013

Manish Chauhan says:

You can transfer from a Saving bank to PPF , but not from PPF to PPF

Posted on February 25th, 2013

shaheen says:

Thanks for your view about RTGS and NEFT. Its helpful for me as I am an Accountant.

Posted on February 26th, 2013

Manish Chauhan says:

Good to hear that Shaheen !

Posted on February 27th, 2013

Srabanti says:

Hello, the processing or service charges for NEFT transactions debited from remitter’s account or beneficiary account?

Posted on February 27th, 2013

Manish Chauhan says:

Remitter !

Posted on March 1st, 2013

Raj says:

Hi.
Need your help.
If money transferred to wrong account using RTGS transaction, what is the procedure to get back the transferred money?

if you dont mind, could you please email me the procedure – rajkumar.bathula@gmail.com.

thank you.

Posted on March 10th, 2013

Vishnu says:

Thank you so much for giving me the clarification about electronics fund transfer………….

Posted on March 11th, 2013

Manish Chauhan says:

Welcome

Posted on March 13th, 2013

Manish Chauhan says:

I am not sure of anything like this, if you make a mistake like this , was it done by you personally or by bank ? If its your mistake, you will then have to personally check where it went and request the other party to pay it back

Posted on March 13th, 2013

Pavan kumar says:

Thank u very use full information

Posted on March 15th, 2013

Navaneelisha says:

Manish…

Thanks for your valued information.. Clear us about MICR code and why and when it is required.

Thanks..
Navaneelisha..

Posted on March 28th, 2013

Prem says:

Crysal clear explanation…. Thanks…!!!

Posted on March 29th, 2013

shastry says:

mr manish,
i am having a elite current a/c in dcb bank, if i deposit money and ask for the rtgs on the same same day they refuse to do so and they insist to do rtgs next day why? is there any rbi instructions please let me know
thank you
shastry

Posted on April 1st, 2013

Manish Chauhan says:

Its something new to me .. never heard of it . Try to ask this on our forum – http://www.jagoinvestor.com/forum/

Posted on April 3rd, 2013

Manish Chauhan says:

Welcome !

Posted on April 3rd, 2013

Manish Chauhan says:

Will write something on it in future

Posted on April 3rd, 2013

Chandra says:

Mr.Manish…..I transfered fund by NEFT around 8.30 pm today and the ammount has been debited in my account. Even though today being saturday!!!
As per the listed timmings given by RBI the transfer will take place only till 12.30pm

Please reply how this can happen…

Regards,

Chandra

Posted on April 6th, 2013

Narendra says:

A very well explained article Manish..!! Thanks.

Posted on April 9th, 2013

Manish Chauhan says:

Thanks Narendra

Posted on April 12th, 2013

Manish Chauhan says:

It many happen that now NEFT is happening on saturdays also , this is an old article if oyu look :)

Posted on April 12th, 2013

DEVASHISH PATTANAYAK says:

Hi ! Manish,
Though i knew and had used NEFT but RTGS is new for me.And also came to know some abt IMPS.Very good for an inquisitive like me.I love bank transactions and it’s different nitty-gritties.But there is just one serious problem,for ex:My father who is a senior citizen,no loan can be brought against being his retired credentials and since i don’t earn more enough how can i get a loan upto 30L with less interest on the principle amt as well as the rates offered by all banks are different.How come is it possible when RBI had assured customers to get their exact interests amt offered on at least[ in my case loan upto 30L] to be aptly applied by any bank whatsoever the sum is?My mother is also a senior citizen and the bank ie BOI stated that if we need home loan then we have to mortgage something precious.Since we just have this house of ours and no other attached property,what can be done.Pls help me.I need to get a loan any how but that should suit my pocket and now it can be brought as now this is on my shoulders.All my siblings are married and not in a state to help.Regards,Devashish.

Posted on April 18th, 2013

Manish Chauhan says:

I dont think there is easy solution to your problem . You can tweak systems. you have to go as per rules only . The only possible solution I can see is “reverse mortgage” product for you. – read more about it – http://www.jagoinvestor.com/2010/06/what-is-reverse-mortgage.html

Posted on April 19th, 2013

Arvind Hannurkar says:

We have one NGO with FCRA Bank Account. USA party is ready to give the donation to NGO, through the cheque of their Bank from USA. i want only clerification of following questions:
1) if party gives us a scan copy of cheque in favor of NGO, then can we check the availability of funds? for this purpose what to do
2)When we will get the confirmation of funds from the bankers, then we will inform to donor that we are ready to accept the donation.Then donor party will give the cheque of their bank from USA. Our NGO account is in Maharashtra State with nationalized bank. Then how duration needs to clear the cheque.?
There are so many fraud things in such type of transactions. But when donor is genius then such fraud things never connected. By considering this point i want the reply.

Posted on April 21st, 2013

basheer says:

there was an option on NEFT transfer about remark in sbh online what does it mean?

Posted on April 24th, 2013

Manish Chauhan says:

Which remark are you talking about ?

Posted on April 26th, 2013

Manish Chauhan says:

Hi Arvind

I dont think this question is really a good fit here on this article, please ask it on our forum – http://www.jagoinvestor.com/forum/

Posted on April 26th, 2013

bj says:

Thanks for the neat compilation Manish!

one query here – can the RTGS mode be used with a normal savings a/c with let’s say Rs. 1000 quarterly avg bal limit? or does the a/c needs to be a specialized type or business bank a/c or something?

apologies if that ques comes out to be quite naive :D

Posted on April 30th, 2013

Manish Chauhan says:

Nothing like it , any banking account which can have netbanking has RTGS available

Posted on May 6th, 2013

Varun Varghese says:

Great explanation Manish. Cleared all my doubts regarding online fund transfer.
Thanks!!

Posted on May 8th, 2013

yash says:

Thanks for these information Manish. There is a doubt hope you will clarify it.
1) Do a account which does not have internet banking facility, avail RTGS/NEFT facility?
1) Can a non home branch customer transfer its funds from bank to any other bank
For e.g. if i have a account in sbi punjab and want to transfer fund from sbi delhi to hdfc delhi would this be possible?

Thanks in advance.

Posted on May 8th, 2013

uma says:

Dear Manish,

A very good explanation. It is very much useful for me.

thanks

Posted on May 9th, 2013

Manish Chauhan says:

Welcome :)

Posted on May 10th, 2013

Manish Chauhan says:

1. Yes, NEFT can be done , but you will have to visit the branch for that

2. Yes

Manish

Posted on May 10th, 2013

Manish Chauhan says:

Thanks Varun

Posted on May 10th, 2013

Ashutosh Sharma says:

Hi Manish,
This page contain very fruitful information in quite equilibrate manner. I was bit puzzled b/w these 2 terms b4 reading your article. Thnx to clear out my confusion via very simple & effective way.

Posted on May 22nd, 2013

S K RAMESH says:

Dear Sir,

Very informative and useful in the interest of academics.

Thanks & keep posting the information like this.

Posted on May 23rd, 2013

Rakesh Kumar says:

I want to know the process whether bank is verifying the Bank account number and Beneficiary Name before crediting the beneficiary account. Is there any control mechanism is established on part of Bank to not credit the wrong account. Whether bank is verifying the Bank account no and name of beneficiary ,in case it is not matched what is the consequences available with bank.

Some bank says we are not reconciling the name of beneficiary with beneficiary account number before crediting the beneficiary account. Is it correct?
Then what is the need of beneficiary name?
Pls advise

Posted on May 23rd, 2013

Manish Chauhan says:

I am not sure on that actually, better start a thread on our forum to know about this – http://www.jagoinvestor.com/forum/

Posted on May 25th, 2013

Manish Chauhan says:

Thanks :)

Posted on May 25th, 2013

Manish Chauhan says:

Great to hear that Ashutosh !

Posted on May 25th, 2013

Saravanan A says:

In NEFT, though many details are asked banks only use Account number for the transfer. If the account number has any typo and its another valid account number – then money will get transferred to that account. It can’t be reversed also. I have practically faced this problem and lost Rs.7000/-. So please check many times when you type and send your details to another person.

Posted on May 28th, 2013

honey shrivastava says:

very nice article… never knew abt this … thanks for such a simple and detailed article

Posted on May 28th, 2013

Manish Chauhan says:

Welcome !

Posted on May 31st, 2013

Manish Chauhan says:

Thansk for sharing that . Even I thought that other things matter !

Posted on May 31st, 2013

Rushikesh Kalyani says:

Very Very nice explaination Boss…. !!!!

Thank you very much !!!!!

rgds,
Rushikesh

Posted on June 3rd, 2013

Manish Chauhan says:

Welcome

Posted on June 4th, 2013

Dileep kumar H J says:

thanks your informaion

Posted on June 20th, 2013

Mary Anita says:

I understood well, it was very useful. Thanks.

Posted on June 28th, 2013

Arnab Dutta says:

Hi,
First of all – many thanks for the excellent post!

I’m from India. Recently I was about to pay LIC premimum online.
A premimum of 3725 INR costing ~ 500 INR as SERVICE TAX!!!!!!!!!!!!!!!!!
If its really so then no point on doing this LIC coz after completion of my premium payment term,
SERVICE TAX >> Interest
Ridiculous country we are living in! How to avoid same thru online???
Plz reply to ‘arnab30dutta@gmail.com’ also..

Thanks in advance,
Arnab

Posted on July 1st, 2013

Manish Chauhan says:

Only LIC can explain it !

Posted on July 1st, 2013

Mumtaz says:

Banks only check the account number, Name is not really required; just for NAME SAKE they ask for name of the recipient. The transmitter must ensure the recipient account number is correct.

Posted on July 3rd, 2013

V K TIWARI says:

I recieved 40,000 rs from LIC of india through a NEFT transaction. I have no clue of this money and i think it is a case of mistaken a/c no. I contacted my bank SBI about this. They have marked a Lien of 40,000 on my a/c.

I want to know weather a marked Lien has any impact on my loan taking ability ?
and also what should i do now. Shoud i contact LIC also or it is the bank’s job ?

Posted on July 7th, 2013

Tshering says:

Hi.. One question! Can anyone transfer cash to my account through neft? I dont have online banking or anything, just a normal SBI account. Waiting for your reply

Posted on July 13th, 2013

Manish Chauhan says:

Yes, one can visit the bank and deposit cash in your account.

Posted on July 15th, 2013

Manish Chauhan says:

I dont think you need to worry on this at all , as this is totally LIC mistake

Posted on July 15th, 2013

n.manikandan says:

thanks manish.your explanation is really clean,keep it up

Posted on July 18th, 2013

Manish Chauhan says:

Thanks :)

Posted on July 18th, 2013

Dipankar Bora says:

Thanks. Its really helpful

Posted on August 6th, 2013

Ravneet says:

Dear Manish

Very Nice Information. We need about the more information about banking Transaction…

Thanks
Ravneet

Posted on August 22nd, 2013

daisy says:

thankyou.. its very useful

Posted on August 23rd, 2013

Kishor Bhatt says:

Dear Manish,
Thanks for useful information

Kishor Bhatt

Posted on September 3rd, 2013

yogita patil. says:

very clear mention the neft and rtgs meaning. so very thank u sir. i really understand the neft and rtgs. Thank u

Posted on September 3rd, 2013

Sandip bondre says:

Dear sir,

thank you sir for giving this information to us. It is very important. Thank you so much.

Posted on September 5th, 2013

Manish Chauhan says:

Welcome

Posted on September 7th, 2013

Vaseem says:

Question, if Ajay transfers money to Vijay’s account, what does Robert do?

Posted on September 7th, 2013

Manish Chauhan says:

Just realised that was a mistake . Ajay is VIJAY !

Posted on September 7th, 2013

Manish Chauhan says:

Welcome

Posted on September 7th, 2013

Manish Chauhan says:

Welcome

Posted on September 7th, 2013

MV says:

Hi,

What happens if the RTGS is initiated by the bank after settlement timings on Saturday?

Regards,

Posted on September 22nd, 2013

G.Narasimha Murthy says:

Atlast clarified and felt relaxed

Posted on September 24th, 2013

Manish Chauhan says:

It will then go on monday if time is not sufficient !

Posted on September 25th, 2013

AMIT DESAI says:

Dear Manish ,
how this RTGS code is generated ? each alpha bate and numbers must have identity . will you explain it ?

Posted on October 15th, 2013

Manish Chauhan says:

thats something very internal , we dont know it . Banks have their own mechanism

Posted on October 18th, 2013

Sadia says:

Very wonderfully clear :)

Posted on October 23rd, 2013

Sadia says:

Very wonderfully clear

Posted on October 23rd, 2013

Raj says:

Dude, you have covered all the points related to NEFT /RTGS Fund Transfer.

Thanks…

Posted on November 28th, 2013

karthick says:

thx a lotz for the useful information… :)

Posted on December 11th, 2013

Manish Chauhan says:

Thanks

Posted on December 12th, 2013

anand says:

thanks for useful information…

Posted on December 13th, 2013

malti says:

hi manish,
i have a doubt, i did neft transaction for my son school online registration form between hdfc and yes bank…at 11am and now the time is 8.50 i m still waiting for the
mail contain utr no. , can u please tell me how longer time it takes for complete the transaction.

Posted on January 24th, 2014

Dileep says:

Excellent information. Thanks for taking the tie to collate the information and make it easy to understand.

Posted on January 29th, 2014

Manish Chauhan says:

Welcome

Posted on January 30th, 2014

Manish Chauhan says:

Generally it should be done the same day, but in worst case, wait till tomm !

Posted on January 30th, 2014

Zuber says:

Hi Manish

Thanks For for information

Posted on February 3rd, 2014

Venkitaraman says:

Thanks Manish. Keep up the good work!

Posted on February 4th, 2014

Ravi says:

Thanks a lot sir

Posted on February 5th, 2014

Manish Chauhan says:

Welcome !

Posted on February 14th, 2014

Hemanth says:

Is there any limit for RTGS payment in the first five online transaction?

Posted on February 17th, 2014

Manish Chauhan says:

Hmm. I am not aware about something like that !

Posted on February 21st, 2014

Vijay says:

Hi Manish,

Thank you very much…Now i am clear about NEFT and RTGS.
God bless you.

Posted on March 4th, 2014

Govind Ram says:

Very useful information. The word ‘its’ should be replaced by ‘it is’

Posted on March 10th, 2014

Manish Chauhan says:

Thanks for that correction !

Posted on March 12th, 2014

Manish Chauhan says:

Thanks for sharing that Vijay !

Posted on March 12th, 2014

Jenil says:

I have an urgent query. It wants to transfer arnd Rs 40000 from icici bank account to other non icici bank account through NEFT. The charge will be Rs 5 for the transaction. My question is what will be the service tax on it.
Can anyone tell me the whole extra charge that will be incurred on Rs 40000 transfer ?

Posted on March 31st, 2014

Manish Chauhan says:

SERVICE charge will be on the charges of Rs 5 , which will be another 60 paisa !

Posted on April 10th, 2014

Murali says:

Good Explanation. Clear to understand. thanks a lot.

Posted on April 15th, 2014

SEEMANK says:

Thank you ……

Posted on April 21st, 2014

abhishek mitra says:

Hi! I have tranfered a fund from OBC to HSBC at 4. 30 pm , however till today its not reflecting at HSBC account.. Where as the amount has been debited from OBC account..
What is the actual cutoff time for transfer..

Posted on May 6th, 2014

Manish Chauhan says:

Its not so much defined, it can happen that the money gets credited the next day !

Posted on May 7th, 2014

k venu says:

sir one small doubt other countrys to transfer in fund, my account in india, more then 4.7 millon. how to process please tell me in that prosses sir

Posted on May 28th, 2014

Manish Chauhan says:

Did you get an email from someone saying that you will get millions ! . Do not fall for it … Its FRAUD

Posted on May 29th, 2014

krishna kumar says:

Now I can understand which option we have to use..either NEFT or RTGS

Thanks so much

Posted on June 5th, 2014

Manish Chauhan says:

Thanks !

Posted on June 11th, 2014

krishna kumar says:

hello sir,

I want to know that using NEFT, when we transfer the money to other bank, then

how much time the money will be transfer to the other bank ?

Posted on June 30th, 2014

Manish Chauhan says:

It will take few hours if you do it before 4-5 pm , else next day !

Posted on July 3rd, 2014

Rohit das says:

Hi I have made a NEFT payment above 10,000 from Axis Bank and wasn’t charged a single penny.

Also can you explain how the NEFT is charged if i want to send 10k to my friend do i have to also include the (charge 1.e 5 rupees ) along with the amount or would it be deducted from the transaction amount and my friend would receive 9995 rupees?

Posted on July 30th, 2014

ravindra vishwakarma says:

sir
if i hav a cheqeue and i use it as NEFT to send mony to another bank like sbi amount like 10,000 okye

so hom much time it will take to clear the cheque and any charge will aapply over amount

Posted on September 4th, 2014

prashant says:

How much amt made by neft and rtgs

Posted on September 6th, 2014

Manish Chauhan says:

Around 1-2 days

Posted on September 20th, 2014

Manish Chauhan says:

No , the extra charge of Rs 5 will be additionally deducted from your account , so it would be 10005

Posted on September 20th, 2014

Ajay Shedge says:

Hello Sir, My Question is that I have account in SBI and I want add my friend account Which other than SBI Account (Axis Bank Account) so which one is better to add friend aacount to my SBI account RTGS ot NEFT? and what time limit to transfer amount to my friend?

Please help me.

Posted on September 22nd, 2014

Manish Chauhan says:

You can add it in NEFT if you want to transfer below 1,99,000 , or RTGS if above 2 lacs

Posted on September 22nd, 2014

vikash says:

sir can I avail the facility of neft other than home branch,, I have account in allahabad bank in patna but ri8 now I m in delhi can I avail this service in delho branch

Posted on September 27th, 2014