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.

  • Amount to be remitted
  • Remitting customer’s account number which is to be debited.
  • Name of the beneficiary bank.
  • Name of the beneficiary.
  • Account number of the beneficiary.
  • IFSC code of the destination bank branch
Note : MICR code is generally not required for NEFT or RTGS transfer

Points to Note

  • Each Bank has their own NEFT and RTGS application form, which you can download from their website
  • RBI declared holidays each year when you cant do NEFT and RTGS fund transfer transactions, see 2012 list
  • To find out different bank branches which are enabled for NEFT and RTGS transactions, you can see this RBI list

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?

241 CommentsAdd Comment

  1. Rakesh


    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

  2. Vasanth


    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


  3. rajiv Singh

    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 ? ?

  4. sangram

    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.

  5. Indrajeet Singh

    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

  6. Bhavi


    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?

  7. Madhav

    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

    • Naveen

      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)

      • Madhav

        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.

        • Naveen

          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.

      • chandan

        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.

  8. Harsh

    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.


  9. manyam

    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.


  10. Jeetu

    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

  11. Anand

    Dear Manish

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

    Thanks again for sharing.

  12. keshavnad

    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..

      • keshavnad

        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.

  13. Abhijit

    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!! :)

  14. RD

    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..

  15. Sandip Sabnis

    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.

  16. 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.

  17. chandresh

    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

  18. Nilesh Singh

    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..



  20. raj

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

  21. Sid


    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?


  22. Sridevi MuraliKrishna

    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

  23. dhiru vala

    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




  25. Govind Gupta

    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

  26. Srabanti

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

    • 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

  27. Navaneelisha


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


  28. shastry

    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

  29. Chandra

    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…



  30. 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.

  31. Arvind Hannurkar

    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.

  32. bj

    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 😀

  33. yash

    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.

  34. Ashutosh Sharma

    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.

  35. S K RAMESH

    Dear Sir,

    Very informative and useful in the interest of academics.

    Thanks & keep posting the information like this.

  36. Rakesh Kumar

    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

  37. Saravanan A

    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.

  38. Arnab Dutta

    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 ‘’ also..

    Thanks in advance,

  39. V K TIWARI

    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 ?

  40. 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

  41. Ravneet

    Dear Manish

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



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

  43. malti

    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.

  44. Jenil

    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 ?

  45. abhishek mitra

    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..

  46. k venu

    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

  47. krishna kumar

    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 ?

  48. Rohit das

    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?

  49. Ajay Shedge

    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.

  50. vikash

    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

  51. shazma

    I have a query,

    I was told that on friday near about 6:30 NEFT payment was made from ICICI to my SBI account. Its saturday, it has been more than 24 hours still I have not received my payment. Why?????

  52. Hari

    If we transfer amount from HDFC (salary account) to another bank through online. How much will be charges..???
    from salary account to another salary account?
    from salary account to saving account ??

  53. debapriya dey

    Dear Manish,

    Please help me out.My father had sent me amount more than 2 lkhs yesterday at around 2 pm.I still haven’t received it yet.The money has been deducted from his account too.I have checked the account details I gave him,which all seem to be correct.Please suggest in worst case scenario,If the money is transferred to somebody else’s account then what can be done?Please reply back.
    Thanks & Regards

  54. Alpesh parmar

    My friend from Moscow did sent 1,00, 000 via internet banking before 7 days from standard chartered bank to my ICICI account but nothing seems credited to my account. When my friend haja samat went to bank he got an response back that I need to contact ICICI bank for other details

    Please help me to get the transaction cleared. I am attaching transaction details hereby. Please get back to me within 24 hours

  55. T N Kumaraguru

    Thank you for providing much information about RTGS/NEFT. I would like to know in whose favour the cheque is to be drawn in either case.
    Thank you

  56. dipak


    When added Beneficiary account I add wrong IFSC code but account number is right

    at a time I don’t know beneficiary IFSC code so I search IFSC code on net and unfortunately city have to offices and I select wrong one

    now I transfer money via NEFT form HDFC bank to indusind bank

    money is debited from HDFC bank account and definitely it is not deposit in beneficiary’s Indusind account now what I have to do to get money back and were can be money

    it is deposited in other persons account or situated as uncleared amount at wrong bank

    also guide what I have to do and where to contact

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