What is The Difference In Charges Between The NEFT and RTGS?

The National Electronic Fund Transfer and the Real Time Gross Settlement are two ways to remit money in India. Both are different in many ways. Let us understand the difference between the two with the help of this table:

	NEFT	RTGS
Amount that can be transferred	Smaller amounts	Amounts that run into lakhs
Charges	Rs 2.5 for amounts below Rs 10,000	Rs 2 lakh up to Rs 5 lakh - Rs 25 + Service Tax Amount above Rs 5 lakh up to Rs 10 lakh - Rs 50 + Service Tax
Time for transfer	Before 2 hours	Real time, but, does take 30 minutes.
Timings	From 8 am to 6.30 pm	8.15 pm to 4.15 pm
Minimum amount	Not stipulated	Rs 2 lakhs
Type of amounts	For small amounts	For large amounts

Difference in charges between NEFT and RTGS?

If you transfer an amount of less than Rs 10,000, the charges applicable is just Rs 2.50 plus service tax, which is certainly reasonable.

If the amount ranges from Rs 10,000 to Rs 1 lakh, the charges if Rs 20 plus service tax, the charges for amounts between Rs 1-2 lakhs is Rs 15 and above Rs 2-5 lakhs it is Rs 25 and also up to Rs 10 lakh. In every case there is a service charge that is applicable.

RTGS Charges

In the case of RTGS, the charges is Rs 25, for amounts above Rs 2 lakh upto Rs 5 lakh, in addition to service tax. On the other hand the amount above Rs 5 lakh upto Rs 10 lakh, it is Rs 50, plus Service Tax.

So what really is the difference in service charges between NEFT and RTGS? It is not really significant. The charges are almost the same. In fact, if you want to transfer large sums of money, you may use the RTGS, or else you need to stock to stick to NEFT.

The other advantage of the RTGS is that it is faster and can also be scheduled in advance.

What information do you need before you can undertake NEFT and RTGS?

The following is needed before you undertake these transactions:

1) IFSC Code

Each bank branch has a unique IFSC code. Once you are in possession of this code, half your job is done. Check with the person whom you are remitting to for this code. We have provided you a list of bank branches and their IFSC code.

2) Amount that you need to send

3) Name of the person's bank and branch

This is often called the beneficiary's bank and branch. Ask the person into whose account you are remitting for all the details.

4) Name of the beneficiary.

You must most certainly have the below, if you want to successfully send and remit your money. Do take a careful look at the IFSC code.

Conclusion

You can use either of these for remittance purposes. Both are efficient and in case the amounts are not credited, it is returned back to the person remitting. It is safe, fast and hassle free.

Do not worry in case the amount is not remitted for whatever reason. It is likely to return back to your account. A reliable way for transfer.

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