presentation given in baroda manipal school of banking by group 6 of 13th batch

1. GROUP - 6

2. Understanding ‘NEFT & RTGS
How does one transfer
money from one bank to
another?

3. Obvious answer :
By Cheque

4. How long does it take
for money to move into
your account after
depositing the Cheque ?

5. Probably a day or
two
In essence it does take
some time?

6. Is there no other option for money
transfer which quickly transfers
money from one bank account to
another bank account?
NEFT and RTGS are two
convenient modes of money
transfer between banks in
India

7. RTGS stands for “Real Time Gross
Settlement” – It enables transfer of
money in real time.
NEFT stands for “National
Electronic Funds Transfer” which is
an online system of transferring
funds between financial
institutions,

8. In RTGS the beneficiary bank credits the
beneficiary’s account in a span of two
hours after receiving the funds transfer
message. RTGS transactions are
processed throughout the working hours
of the system.
NEFT is done on a net basis where the
bank clubs transactions together and only
the net amount is transferred. This
settlement usually takes place 12 times a
day on weekdays and 6 times on
Saturdays. NEFT takes place within the
same day if it is within the cut off time
and the next working day if it is beyond
the cut-off time.

9. • 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

10. • The acronym “NEFT” stands for National Electronic Funds Transfer.
• Funds are transferred to the credit account with the other participating
Bank using RBI's NEFT service.
• RBI acts as the service provider and transfers the credit to the other
bank's account.
 NEFT 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

11. Type Minimum Maximum
RTGS Rs. 2 Lakh No Limit
NEFT No Limit
No Limit
(abroad facility only in
Nepal 50,000 max)
* HOWEVER MAXIMUM AMOUNT PER TRANSACTION IS
LIMITED TO RS 2,00,000

12. RTGS transactions will be sent to RBI based on the following schedule:
Day Start Time End Time
Monday to Friday 9:00 hrs 16:00 hrs
Saturday 9:00 hrs 13:30 hrs
NEFT transactions will be sent to RBI based on the following schedule:
Day Start Time End Time
Monday to Friday 8:00 hrs 19:00 hrs
Saturday 8:00 hrs 13:00 hrs

13. REMITTING
CUSTOMER
BENIFICIARY
BRANCH
BENIFICARY
CUSTOMER A/C
PROCESS
Clearing
House
(RBI)

14. • The essential information that the remitting customer would have to
furnish to a bank for the remittance to be effected
 Amount to be remitted
 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

15.  It depends on the arrangement between the remitting customer and
the remitting bank.
 Some banks with internet banking facility provide this service.
 Once the funds are credited to the account of the beneficiary bank,
the remitting customer gets a confirmation from his bank either by
an e-mail or by a short message on the mobile

17. Majority of commercial banks have
employed RTGS and it is available in
over 30472 branches
NEFT facility is available in 32407
branches of banks. These branches
may be in remote corner of the
country also

18. BENEFITS
 Available to all
 All our Net banking (existing & new) users are eligible to utilize this on-line facility.
 It's simple, convenient, quick and secure
 Users can transfer funds to the beneficiaries in other banks in a simple, convenient and
seamless manner.
 Funds transfer to other banks is faster, secure and safe
 Anytime, anywhere...
 Simple and easy to operate - from home / office anytime, anywhere
 Save time and energy
 Get more for less
 RTGS/NEFT cost less than the conventional modes of remittance such as DD/MT

19. To conclude I’ve tried to summarize
the key differentiation in these concepts
through diagrams in the next 2 slides

20. Money transfer happens
in real time and directly
through the banking
system

21. Money is aggregated in
clusters for reconciliation
and settlement