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NEFT and RTGS – A detailed Guide

by Manish Chauhan · 209 comments

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?

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{ 209 comments… read them below or add one }

1 Jassi September 3, 2012 at 9:58 am

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

Rgds,
Jassi

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2 Pushpender September 3, 2012 at 10:10 am

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

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3 Manish Chauhan September 5, 2012 at 9:35 pm

Corrected already

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4 Rakesh September 3, 2012 at 10:23 am

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

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5 Manish Chauhan September 5, 2012 at 9:34 pm

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

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6 Vasanth September 3, 2012 at 10:24 am

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

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7 Anand September 3, 2012 at 5:50 pm

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

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8 Vasanth September 3, 2012 at 6:12 pm

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

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9 Arun Rathi September 4, 2012 at 12:50 pm

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 :)

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10 Manish Chauhan September 5, 2012 at 9:02 pm

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

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11 Manish Chauhan September 5, 2012 at 9:32 pm

Will update an article on IMPS very soon !

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12 rajiv Singh September 3, 2012 at 10:25 am

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 ? ?

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13 Manish Chauhan September 5, 2012 at 9:31 pm

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

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14 Prabhat September 3, 2012 at 10:47 am

Good Article on Transactions.

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15 Manish Chauhan September 5, 2012 at 9:29 pm

Thanks Prabhat

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16 Karan Batra - Tax Consultant September 3, 2012 at 11:23 am

Hi Manish

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

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17 Manish Chauhan September 5, 2012 at 9:28 pm

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/

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18 sangram September 3, 2012 at 11:34 am

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.

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19 Manish Chauhan September 5, 2012 at 9:28 pm

Corrected

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20 Indrajeet Singh September 3, 2012 at 11:54 am

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

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21 Manish Chauhan September 5, 2012 at 9:27 pm

Corrected !

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22 Bhavi September 3, 2012 at 5:05 pm

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?

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23 Manish Chauhan September 5, 2012 at 9:11 pm

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

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24 Madhav September 3, 2012 at 6:05 pm

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

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25 Naveen September 3, 2012 at 11:35 pm

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)

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26 Madhav September 5, 2012 at 5:51 pm

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.

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27 Manish Chauhan September 5, 2012 at 8:42 pm

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 ?

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28 Naveen September 5, 2012 at 9:28 pm

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.

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29 Manish Chauhan September 5, 2012 at 9:01 pm

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

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30 chandan September 12, 2012 at 4:06 pm

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.

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31 Harsh September 4, 2012 at 12:01 am

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

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32 Manish Chauhan September 5, 2012 at 8:41 pm

Harsh

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

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33 manyam September 4, 2012 at 2:47 am

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

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34 Manish Chauhan September 5, 2012 at 8:35 pm

Thanks for your comment .

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35 khalid September 4, 2012 at 6:16 am

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

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36 Manish Chauhan September 5, 2012 at 8:34 pm

Thanks Khalid

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37 Jeetu September 4, 2012 at 11:17 am

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

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38 Manish Chauhan September 5, 2012 at 8:34 pm

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

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39 Anand September 4, 2012 at 1:11 pm

Dear Manish

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

Thanks again for sharing.

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40 Manish Chauhan September 5, 2012 at 8:32 pm

Will do a seperate post on that

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41 keshavnad September 4, 2012 at 5:54 pm

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…

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42 Manish Chauhan September 5, 2012 at 8:27 pm

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

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43 keshavnad September 6, 2012 at 10:57 am

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.

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44 Manish Chauhan September 8, 2012 at 10:15 pm

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

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45 Abhijit September 6, 2012 at 10:28 am

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!! :)

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46 Manish Chauhan September 8, 2012 at 10:17 pm

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 ?

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47 RD September 6, 2012 at 8:42 pm

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..

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48 Manish Chauhan September 8, 2012 at 9:44 pm

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

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49 RD September 6, 2012 at 8:45 pm

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

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50 Manish Chauhan September 8, 2012 at 9:43 pm

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

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51 Santosh Prasad September 9, 2012 at 11:39 pm

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

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52 Manish Chauhan September 10, 2012 at 8:56 am

Thanks for sharing that !

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53 A.Sundaram October 1, 2012 at 1:27 pm

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.

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54 Manish Chauhan October 2, 2012 at 2:05 pm

Havent checked that ..will do it

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55 A.Sundaram October 2, 2012 at 3:59 pm

Please do keep us updated.Thanks.

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56 Ashutosh September 9, 2012 at 5:22 pm

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

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57 Manish Chauhan September 10, 2012 at 9:09 am

Did you try it Ashutosh ?

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58 Brajesh September 12, 2012 at 2:24 pm
59 Manish Chauhan September 14, 2012 at 6:43 am

Thanks for that link , will write about it soon

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60 vivek September 13, 2012 at 6:11 pm

Thanks Manish for the clarification.

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61 veera September 25, 2012 at 4:50 am

Thanks Manish for the info.

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62 Manish Chauhan September 26, 2012 at 11:53 am

Welcome

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63 Sandip Sabnis September 27, 2012 at 11:51 am

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.

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64 Manish Chauhan September 29, 2012 at 11:09 am

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

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65 venu November 20, 2012 at 11:15 am

i understand better

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66 Mulay Narendra November 22, 2012 at 2:13 pm

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

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67 Manish Chauhan November 25, 2012 at 11:26 am

Thanks Mulay !

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68 Ram November 22, 2012 at 8:48 pm

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.

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69 Manish Chauhan November 25, 2012 at 11:19 am

Thanks Ram !

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70 chandresh December 7, 2012 at 10:26 pm

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

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71 Manish Chauhan December 11, 2012 at 3:22 pm

Thanks Chandresh !

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72 deepak kumar December 22, 2012 at 10:14 pm

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

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73 Manish Chauhan December 24, 2012 at 9:54 am

Thanks Deepak !

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74 Sudheer December 28, 2012 at 1:52 am

Very well written article. Informative and cognitive !

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75 Manish Chauhan December 29, 2012 at 7:52 pm

Thanks !

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76 Nilesh Singh January 10, 2013 at 10:26 am

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..

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77 PRAVIN GUPTA January 15, 2013 at 7:50 pm

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

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78 Manish Chauhan January 18, 2013 at 2:23 pm

Thanks

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79 pvd January 16, 2013 at 12:50 pm

Thanks Manish. Good Job.

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80 Dharmendra kumar Pandit January 16, 2013 at 7:57 pm

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

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81 Manish Chauhan January 18, 2013 at 10:14 am

Thanks :)

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82 maravarman January 19, 2013 at 11:50 am

NICE CLARIFICATION BETWEEN RTGS AND NEFT THANK YOU

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83 Manish Chauhan January 19, 2013 at 7:13 pm

Welcome

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84 srinivasu January 20, 2013 at 7:58 am

it’s very nice explanation.

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85 Manish Chauhan January 22, 2013 at 4:58 pm

Thanks

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86 Vishal Shah January 23, 2013 at 4:26 pm

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

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87 Manish Chauhan January 24, 2013 at 2:29 pm

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

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88 raj January 29, 2013 at 3:36 pm

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

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89 Manish Chauhan January 30, 2013 at 1:37 pm

Its online!

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90 Sid January 31, 2013 at 10:03 pm

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

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91 Manish Chauhan February 7, 2013 at 5:26 pm

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.

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92 Sridevi MuraliKrishna February 4, 2013 at 2:52 pm

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

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93 Manish Chauhan February 6, 2013 at 10:46 am

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

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94 dhiru vala February 7, 2013 at 4:58 pm

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

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95 prashant February 8, 2013 at 12:37 pm

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

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96 Manish Chauhan February 11, 2013 at 8:00 pm

You can do it from anywhere !

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97 prashant September 6, 2014 at 4:21 pm

How much amt made by neft and rtgs

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98 Nikhil sharma February 9, 2013 at 2:27 pm

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

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99 Manish Chauhan February 11, 2013 at 5:19 pm

Thanks

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100 ROHIT ARORA February 13, 2013 at 3:24 pm

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.

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101 Manish Chauhan February 18, 2013 at 2:22 pm

Good to hear that Rohit

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102 Govind Gupta February 22, 2013 at 3:45 pm

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

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103 Manish Chauhan February 25, 2013 at 5:51 pm

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

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104 shaheen February 26, 2013 at 12:20 pm

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

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105 Manish Chauhan February 27, 2013 at 10:03 am

Good to hear that Shaheen !

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106 Srabanti February 27, 2013 at 2:09 pm

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

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107 Manish Chauhan March 1, 2013 at 8:55 pm

Remitter !

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108 Raj March 10, 2013 at 4:57 pm

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.

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109 Manish Chauhan March 13, 2013 at 12:13 pm

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

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110 Vishnu March 11, 2013 at 1:59 pm

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

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111 Manish Chauhan March 13, 2013 at 11:56 am

Welcome

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112 Pavan kumar March 15, 2013 at 12:48 pm

Thank u very use full information

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113 Navaneelisha March 28, 2013 at 9:11 am

Manish…

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

Thanks..
Navaneelisha..

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114 Manish Chauhan April 3, 2013 at 1:21 pm

Will write something on it in future

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115 Prem March 29, 2013 at 9:51 am

Crysal clear explanation…. Thanks…!!!

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116 Manish Chauhan April 3, 2013 at 11:43 am

Welcome !

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117 shastry April 1, 2013 at 9:28 am

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

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118 Manish Chauhan April 3, 2013 at 9:40 am

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

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119 Chandra April 6, 2013 at 9:22 pm

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

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120 Manish Chauhan April 12, 2013 at 12:48 pm

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

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121 Narendra April 9, 2013 at 12:23 pm

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

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122 Manish Chauhan April 12, 2013 at 11:57 am

Thanks Narendra

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123 DEVASHISH PATTANAYAK April 18, 2013 at 12:46 am

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.

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124 Manish Chauhan April 19, 2013 at 10:33 am

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

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125 Arvind Hannurkar April 21, 2013 at 4:20 pm

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.

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126 Manish Chauhan April 26, 2013 at 2:04 pm

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/

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127 basheer April 24, 2013 at 3:26 pm

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

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128 Manish Chauhan April 26, 2013 at 11:24 am

Which remark are you talking about ?

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129 bj April 30, 2013 at 3:15 pm

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

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130 Manish Chauhan May 6, 2013 at 5:21 pm

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

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131 Varun Varghese May 8, 2013 at 10:07 am

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

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132 Manish Chauhan May 10, 2013 at 4:03 pm

Thanks Varun

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133 yash May 8, 2013 at 3:05 pm

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.

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134 Manish Chauhan May 10, 2013 at 3:53 pm

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

2. Yes

Manish

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135 uma May 9, 2013 at 11:02 am

Dear Manish,

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

thanks

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136 Manish Chauhan May 10, 2013 at 3:18 pm

Welcome :)

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137 Ashutosh Sharma May 22, 2013 at 9:19 am

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.

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138 Manish Chauhan May 25, 2013 at 5:32 pm

Great to hear that Ashutosh !

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139 S K RAMESH May 23, 2013 at 9:35 am

Dear Sir,

Very informative and useful in the interest of academics.

Thanks & keep posting the information like this.

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140 Manish Chauhan May 25, 2013 at 4:40 pm

Thanks :)

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141 Rakesh Kumar May 23, 2013 at 5:21 pm

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

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142 Manish Chauhan May 25, 2013 at 4:27 pm

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

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143 Mumtaz July 3, 2013 at 2:58 pm

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.

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144 Saravanan A May 28, 2013 at 7:07 am

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.

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145 Manish Chauhan May 31, 2013 at 5:10 pm

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

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146 honey shrivastava May 28, 2013 at 11:53 am

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

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147 Manish Chauhan May 31, 2013 at 5:04 pm

Welcome !

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148 Rushikesh Kalyani June 3, 2013 at 12:56 pm

Very Very nice explaination Boss…. !!!!

Thank you very much !!!!!

rgds,
Rushikesh

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149 Manish Chauhan June 4, 2013 at 3:39 pm

Welcome

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150 Dileep kumar H J June 20, 2013 at 2:18 pm

thanks your informaion

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151 Mary Anita June 28, 2013 at 2:38 pm

I understood well, it was very useful. Thanks.

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152 Arnab Dutta July 1, 2013 at 1:55 pm

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

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153 Manish Chauhan July 1, 2013 at 2:19 pm

Only LIC can explain it !

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154 V K TIWARI July 7, 2013 at 11:04 pm

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 ?

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155 Manish Chauhan July 15, 2013 at 1:58 pm

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

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156 Tshering July 13, 2013 at 1:16 am

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

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157 Manish Chauhan July 15, 2013 at 12:20 pm

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

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158 n.manikandan July 18, 2013 at 12:05 pm

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

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159 Manish Chauhan July 18, 2013 at 2:28 pm

Thanks :)

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160 Dipankar Bora August 6, 2013 at 1:37 pm

Thanks. Its really helpful

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161 Ravneet August 22, 2013 at 1:34 pm

Dear Manish

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

Thanks
Ravneet

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162 daisy August 23, 2013 at 11:41 am

thankyou.. its very useful

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163 Kishor Bhatt September 3, 2013 at 5:07 pm

Dear Manish,
Thanks for useful information

Kishor Bhatt

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164 Manish Chauhan September 7, 2013 at 6:02 pm

Welcome

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165 yogita patil. September 3, 2013 at 9:41 pm

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

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166 Manish Chauhan September 7, 2013 at 5:43 pm

Welcome

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167 Sandip bondre September 5, 2013 at 11:07 pm

Dear sir,

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

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168 Manish Chauhan September 7, 2013 at 12:57 pm

Welcome

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169 Vaseem September 7, 2013 at 1:48 pm

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

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170 Manish Chauhan September 7, 2013 at 4:52 pm

Just realised that was a mistake . Ajay is VIJAY !

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171 MV September 22, 2013 at 8:35 am

Hi,

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

Regards,

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172 Manish Chauhan September 25, 2013 at 1:51 pm

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

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173 G.Narasimha Murthy September 24, 2013 at 7:05 am

Atlast clarified and felt relaxed

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174 AMIT DESAI October 15, 2013 at 7:32 pm

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

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175 Manish Chauhan October 18, 2013 at 9:07 pm

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

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176 Sadia October 23, 2013 at 8:20 pm

Very wonderfully clear :)

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177 Sadia October 23, 2013 at 8:21 pm

Very wonderfully clear

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178 Raj November 28, 2013 at 6:13 pm

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

Thanks…

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179 Manish Chauhan December 12, 2013 at 5:18 pm

Thanks

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180 karthick December 11, 2013 at 10:13 am

thx a lotz for the useful information… :)

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181 anand December 13, 2013 at 11:54 am

thanks for useful information…

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182 malti January 24, 2014 at 8:55 pm

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.

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183 Manish Chauhan January 30, 2014 at 6:42 pm

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

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184 Dileep January 29, 2014 at 4:50 pm

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

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185 Manish Chauhan January 30, 2014 at 4:36 pm

Welcome

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186 Zuber February 3, 2014 at 1:36 pm

Hi Manish

Thanks For for information

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187 Venkitaraman February 4, 2014 at 10:21 am

Thanks Manish. Keep up the good work!

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188 Ravi February 5, 2014 at 4:40 pm

Thanks a lot sir

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189 Manish Chauhan February 14, 2014 at 6:18 pm

Welcome !

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190 Hemanth February 17, 2014 at 4:57 pm

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

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191 Manish Chauhan February 21, 2014 at 10:57 am

Hmm. I am not aware about something like that !

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192 Vijay March 4, 2014 at 12:24 pm

Hi Manish,

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

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193 Manish Chauhan March 12, 2014 at 9:31 pm

Thanks for sharing that Vijay !

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194 Govind Ram March 10, 2014 at 1:14 pm

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

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195 Manish Chauhan March 12, 2014 at 4:57 pm

Thanks for that correction !

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196 Jenil March 31, 2014 at 11:54 am

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 ?

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197 Manish Chauhan April 10, 2014 at 3:45 pm

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

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198 Murali April 15, 2014 at 7:38 pm

Good Explanation. Clear to understand. thanks a lot.

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199 SEEMANK April 21, 2014 at 4:14 pm

Thank you ……

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200 abhishek mitra May 6, 2014 at 8:16 am

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..

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201 Manish Chauhan May 7, 2014 at 3:05 pm

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

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202 k venu May 28, 2014 at 5:13 pm

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

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203 Manish Chauhan May 29, 2014 at 9:53 am

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

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204 krishna kumar June 5, 2014 at 6:05 pm

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

Thanks so much

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205 Manish Chauhan June 11, 2014 at 10:38 am

Thanks !

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206 krishna kumar June 30, 2014 at 3:55 pm

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 ?

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207 Manish Chauhan July 3, 2014 at 10:32 pm

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

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208 Rohit das July 30, 2014 at 10:40 pm

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?

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209 ravindra vishwakarma September 4, 2014 at 3:03 pm

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

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