NJ asked in Business & FinancePersonal Finance · 1 decade ago

What is the difference between RTGS and NEFT payment remittance?

At HDFC bank site , if we do online money transfer there are two options RTGS or NEFT?? Which one we should opt for and what is the difference between two??

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  • 1 decade ago
    Favorite Answer

    1. What is RTGS System?

    Ans The acronym "RTGS" stands for Real Time Gross Settlement. RTGS system is a funds transfer mechanism where transfer of money takes place from one bank to another on a "real time" and on "gross" basis. This is the fastest possible money transfer system through the banking channel. Settlement in "real time" means payment transaction is not subjected to any waiting period. The transactions are settled as soon as they are processed. "Gross settlement" means the transaction is settled on one to one basis without bunching with any other transaction. Considering that money transfer takes place in the books of the Reserve Bank of India, the payment is taken as final and irrevocable.

    2 How RTGS is different from Electronic Fund Transfer System (EFT) or National Electronics Funds Transfer System (NEFT)?

    Ans EFT and NEFT are electronic fund transfer modes that operate on a deferred net settlement (DNS) basis which settles transactions in batches. In DNS, the settlement takes place at a particular point of time. All transactions are held up till that time. For example, NEFT settlement takes place 6 times a day during the week days (9.30 am, 10.30 am, 12.00 noon. 1.00 pm, 3.00 pm and 4.00 pm) and 3 times during Saturdays (9.30 am, 10.30 am and 12.00 noon). Any transaction initiated after a designated settlement time would have to wait till the next designated settlement time. Contrary to this, in RTGS, transactions are processed continuously throughout the RTGS business hours.

    Source(s): Reserve Bank of India http://www.rbi.org.in/scripts/FAQView.aspx?Id=65
  • Anonymous
    5 years ago

    This Site Might Help You.

    RE:

    What is the difference between RTGS and NEFT payment remittance?

    At HDFC bank site , if we do online money transfer there are two options RTGS or NEFT?? Which one we should opt for and what is the difference between two??

    Source(s): difference rtgs neft payment remittance: https://shortly.im/tZGw7
  • lujan
    Lv 4
    4 years ago

    Rtgs And Neft Difference

  • 1 decade ago

    An RTGS (Real Time Gross Settlement) payment system is one in which payment instructions between banks are processed and settled individually ...The attraction of the RTGS systems is that payee banks and the customers receive funds with certainty, or say finality, during the day, enabling them to use the funds immediately without exposing themselves to risk.

    NEFT is an application developed to facilitate customers to transfer funds from one bank account to another bank account ....It is an efficient, secure, economical, reliable and expeditious system of funds transfer between banks

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  • 7 years ago

    Simply RTGS means online and fastest banking transections

  • 6 years ago

    YES

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