Real-Time Gross Settlement is a method to electronically (or online) transfer fund from one bank to another on real time and immediate settlement. This is fastest way to transfer the money through Bank. This transfer takes place in the book of RBI, the payment made is final and cannot be recovered. RTGS generally transfer huge funds above at least 2 Lakhs. Bank fee may vary from bank to bank, but an upper limit is set by RBI. For this kind of transfer both sending and receiving braches should have assigned with an IFSC Code.
NEFT stands for national Electronic Fund Transfer. NEFT is an electronic fund transfer mechanism which facilitate individual, corporate to transfer fund electronically to another individual or corporate having a Bank Account. It requires the recipient account number and Branch IFSC Code to transfer the amount. There is no lower or upper limit. It operates on Defered Net Settlement (DNS) basis unlike gross settlement in RTGS. DNS means the transaction will take place on a specific time in batches. In Gross Settlement, transaction settled immediately on real time.
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