Digital payment options like NEFT, IMPS and RTGS have made lives of each one of us simpler than before. Long gone are the days when you were supposed to wait for weekdays for the bank to open so that you could withdraw the required money. Via such digital payment modes, you can conduct transactions within sometime from any corner of the globe at your convenience and comfort. Two of the highly used methods of making digital payments involve RTGS and NEFT. Let’s discuss these methods of making payments in depth.
What’s The Difference Between RTGS & NEFT?
However, before that, note that you can easily use these methods through your bank account’s net banking. For instance, suppose if you hold SBI and Bank of Baroda accounts, then through using their net banking facility, you may not just check the SBI mini statement number and Bank of Baroda mini statement number, but also make the most out of the RTGS and NEFT banking services available.
What’s NEFT mode?
NEFT stands for National Electronic Fund Transfer is an important fund transfer system, which is used by the Indian banks and financial institutes. This is a half hourly batch wise payment mode. It means that the payments are performed in batches all day round i.e., 24 X 7. For conducting the transactions via the NEFT mode, you would require inputting the details of the beneficiary.
How can you transfer the fund via the NEFT mode?
To make the fund payment via the NEFT mode, you must follow the steps mentioned below –
·Sign into your internet banking account. Also, you can use the mobile banking app for the NEFT mode.
·Once done, you would require adding the beneficiary. It is the entity or person to whom you would want to transfer the fund. For doing so, you would require adding the listed details linked to the beneficiary –
Ø Branch name
Ø Account holder name
Ø Bank account number
Ø Bank IFSC code
· Post adding the beneficiary, you may send the required funds through the NEFT mode.
Fees on the transactions via the NEFT mode –
|Transaction amount||Fees charges|
|Equivalent or over Rs 2 lakh||Rs 25|
|From Rs 1 lakh to Rs 2 lakh||Rs 15|
|From Rs 10,000 to Rs 1 lakh||Rs 5|
|Below or equivalent to Rs 10,000||Rs 2.5|
RBI (Reserve Bank of India) has come up with guidelines in 2021. As per the guidelines, no financial institutions can charge on the online money transfers performed via the savings bank account.
Why must you use the NEFT mode for the fund transfer?
You must use NEFT mode owing to the listed benefits –
· Real time transactions
·Transfer funds anywhere at any time around the globe
·No requirement for physical instruments as well as 3rd parties to make the fund transfer
·Faster and easy way of transferring the fund
What’s RTGS (Real Time Gross Settlement)?
Real time gross settlement or RTGS in short is a money transfer mode that permits instant fund transfer in real time. Such payments are managed well by the central banks of the countries and are in nature irrevocable.
How can you transfer the funds via the RTGS mode?
- · You can either sign into your current or savings bank account or may approach your bank branch for making the RTGS transactions.
- ·Hit on the fund transfer mode.
- ·Select the RTGS mode option for the money transfer.
Listed info must be provided for conducting RTGS transaction –
- ·Branch and bank name
- ·IFSC code of the bank account of the beneficiary
- ·Bank account number
- ·Beneficiary’s name
Why select the RTGS mode?
Mentioned here are the reasons for conducting the RTGS transactions –
- ·Zero physical instrument is required for conducting the payments
- ·Zero requirement to approach the bank directly for transactions
- ·You may instantly transfer the fund securely
Which option is a better choice for you – RTGS or NEFT mode?
The choice of payment modes is based on the urgency and amount that you require transferring. If you require making a massive payment, you must select the RTGS route. If you do not have any immediate requirement to transfer the fund and the sum is not huge, you might select the NEFT mode.
Overall, both the payment methods are secure to use as they are governed by the RBI (Reserve Bank of India). These methods allow you to make the payments securely without the requirement for visiting the bank directly for any reason.
RTGS or NEFT – Which is a better deal?
By looking at the distinctions above, it may be evident that RTGS and NEFT mode are two distinct fund transfer modes that you can use any time through your net banking from the convenience of your home or office. So, if you have an SBI bank account, then you can use its net banking, not just to get an idea about the SBI mini statement number but also can use the facility to make RTGS or NEFT transfers with ease.
While NEFT mode has zero maximum or minimum limit on the amount to get transferred, RTGS transactions can just be conducted if the amount is transferred equal to or over Rs 2 lakh. Likewise, NEFT takes nearly two hours to get processed, while the transaction through the RTGS mode is processed instantly.
So, if you are confused and unable to decide which option you must opt for, then you may select anyone based on your needs as explained below –
You might opt for the NEFT mode as this fund transfer mode allows you to transfer small funds, in the case when there’s no urgency to complete the transactions instantly.
Alternatively, if you want to transfer a massive fund on an instant basis, the RTGS mode must be the preferred route for transferring your fund.
Regardless of whichever mode you select, it is vital you note that both such methods are secure and safe equally and are governed by the RBI (Reserve Bank of India). Both, RTGS and NEFT are reliable payment modes that support cashless, digital initiative in forming an advanced economy.
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