The acronym 'RTGS' stands for Real Time Gross Settlement, RTGS system is primarily meant for large value transactions. RTGS System is set up, operated and maintained by Reserve Bank of India to enable funds settlement on real-time basis across RTGS enabled banks in the country. This is the fastest possible money transfer system through the banking channel. The minimum amount to be remitted through RTGS is 2 lakh.
NEFT is an electronic fund transfer system that operates on a Deferred Net Settlement (DNS) basis which settles transactions in batches. In DNS, the settlement takes place with all transactions received till the particular cut-off time. National Electronic Funds Transfer (NEFT) system is a nationwide funds transfer system to facilitate transfer of funds from any NEFT enabled bank branch to any other NEFT enabled bank branch. Funds transferred under NEFT will be credited to the beneficiary’s account on the same day.
customer has to furnish the following information to a bank for RTGS or NEFT.
- Amount to be remitted
- Remitting customer’s account number which is to be debited
- Name of the beneficiary bank
- Name of the beneficiary customer
- Account number of the beneficiary customer
- Sender to receiver information, if any
- The IFSC Number of the receiving branch