The acronym NEFT stands for National Electronics Funds Transfer system.
In NEFT bank settle transactions in batches. This means, settlement of one transaction takes place along with all other transactions received till a particular cut-off time.
NEFT settlements are done every hour in batches. That means transactions within that hour will be settled at once.
The current NEFT settlements are settled in 12 batches starting from morning 8 AM to 7 PM in week days and in six settlements on Saturday from 8 AM to 1 PM.
A NEFT transaction initiated after 7PM in week days will be settled on the next day morning at 8AM.
Similarly transactions initiated on Saturday after 1 PM will be cleared or settled on Monday morning at 8 AM.
Difference between NEFT and RTGS
|National Electronics Funds Transfer – NEFT||Real Time Gross Settlement – RTGS|
|Under NEFT, the transfer system works on a deferred net settlement basis in which settlement of transactions are done in batches.This settlement process is called DNS. Settlement process will take all the transaction received within the cut off time and process it in a lot or batch.If you initiated a transaction after a cut off time then you have to wait till the next cut off time to get the transaction settled.
Under NEFT the payables and receivable are netted while settling your account.
|Under RTGS, the transfer is done instruction wise received from the banker.Each and every instruction will be processed separately on real time basis. No netting of transactions is happened in this case.|
|You can initiate NEFT transaction from your net banking account by adding the beneficiary account to which you want to transfer the money.||You have to do this transaction by visiting a branch office of the bank where you have account.|
|There is not limit in such type of transaction.||Minimum amount under RTGS is Rs. 2, 00,000. There is no upper limit.|
|You can execute such transaction online at any time you want.||You have visit the bank within the RTGS business hours. Some banks are started online facility for RTGS.|
Anyone having net banking facility can avail the benefit of NEFT.