RTGS mode of Fund transfer is faster than EFT or NEFT

September 7th, 2012| Finance.

RTGS, EFT and NEFT are the methods of transfer of funds from one bank account to another account in another bank in India.

RTGS (Real Time Gross Settlement) is a funds transfer mechanism where transfer of money takes place from one bank to another on a real time and on gross basis. RTGS is the fastest mode of transfer of funds from one bank account to another bank account in India. RTGS transactions are settled as soon as they are processed and are settled on one to one basis without bunching with any other transaction. Both sending bank branch and receiving bank branch have to be RTGS enabled for funds transfer through RTGS. RTGS transactions take normally two hours for fund transfer from one account to another account. RTGS Service Is Available From 9.00 hours to 16.30 hours on week days and from 9.00 hours to 12.30 noon on Saturdays. The remitting customer has to provide information regarding the name and account number of the beneficiary, amount to be remitted, name of the beneficiary branch and its IFSC number. More than 52,000 bank branches are providing RTGS facility in India. Bank branches in India that provide RTGS service can be had from the official website of RBI at www. rbi.org.in/Scripts/Bs_viewRTGS.aspx

EFT (Electronic Fund Transfer) and NEFT (National Electronics Funds Transfer) are electronic fund transfer modes that operate on a DNS ( Deferred Net Settlement). In DNS, the settlement takes place at a particular point of time. All transactions are held up till that time. In week days DNS takes place 6 times a day and on Saturdays DNS takes place 3 times in a day.

The minimum amount to be transferred by RTGS is Rs.1,00,000/- only and there is no maximum limit. There is no minimum and maximum limit for EFT or NEFT mode of funds transfer.