What is RTGS and NEFT

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RTGS and NEFT are electronic payment systems used for transferring funds between banks in India.

RTGS stands for Real Time Gross Settlement and is used for high-value transactions with immediate transfer of funds.
NEFT stands for National Electronic Funds Transfer and is used for transferring funds in batches with settlement in hourly intervals.
RTGS has no minimum or maximum limit for fund transfer, while NEFT has a maximum limit of Rs. 2 lakhs per transaction.
Both RTGS and NEFT are operated by the Reserve Bank of India (RBI) and are secure modes of fund transfer.
RTGS operates on a gross settlement basis, where transactions are settled individually, while NEFT operates on a net settlement basis, where transactions are settled in batches.

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