NEFT and RTGS are electronic funds transfer systems in India. NEFT operates on a deferred net settlement basis, settling transactions in batches throughout the day for small value transfers. RTGS provides real-time settlement of high value transactions of ₹2 lakhs or more. Both schemes allow individuals and businesses to transfer funds between bank accounts electronically instead of using paper instruments. Key details include operating hours, minimum amounts, settlement timeframes, and procedures for returning funds if a transfer fails. NEFT can also be used to send remittances to Nepal.

1. Internet Banking ~ NEFT & RTGS
A Digital Banking Initiative
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2. Introduction
• Available at NEFT-enabled & RTGS-enabled bank branches.
• Also available online via internet banking & mobile banking.
• The remitter need not send any physical cheque or demand draft to the beneficiary.
• The beneficiary need not visit his / her bank for depositing the paper instruments.
• The beneficiary need not be apprehensive of loss of physical instruments or possibility of fraudulent encashment.
• You cannot send remittances abroad, except to Nepal as per the Indo-Nepal Remittance Facility Scheme.
• Always use the correct IFSC (Indian Financial System Code) when doing NEFT / RTGS payments.
• You can contact NEFT / RTGS customer care to follow up on the funds transfer.
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3. NEFT
• National Electronic Funds Transfer
• You can transfer funds easily & securely in near real-time.
• Operates on a Deferred Net Settlement (DNS) basis which settles transactions in hourly batches; total 12
settlements in a day.
• For small value transactions with no minimum amount.
• You can accept cash for originating transactions.
• Pay your credit card bills via NEFT! But use the correct IFSC with Transaction Code #52.
NEFT is a nation-wide payment system facilitating one-
to-one funds transfer. Under this scheme, individuals,
firms & corporates can electronically transfer funds
from any bank branch to any individual, firm or
corporate having an account with any other bank
branch in the country participating in the scheme.
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4. Who can use NEFT?
Who can transfer funds using NEFT?
• Individuals, firms or corporates maintaining accounts with a NEFT-enabled branch.
• Walk-in customers, without a bank account, can also deposit cash at any NEFT-enabled branch. But such cash
remittances will be restricted to a maximum of ₹ 50,000/- per transaction. These customers must furnish full
details including complete address, telephone number, etc.
Who can receive funds through NEFT?
Individuals, firms or corporates maintaining accounts with a NEFT-enabled bank branch. But it is necessary for the
beneficiary to have an account with the NEFT-enabled destination branch.
You can do NEFT transfers from or to NRE & NRO accounts, subject to the adherence of the provisions of the Foreign
Exchange Management Act, 2000 (FEMA) and Wire Transfer Guidelines.
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5. How does NEFT work?
• The remitter fills the NEFT Application form with the previously mentioned information along with the amount to
be remitted. He/she authorizes his/her branch to debit his/her account & remit the specified amount to the
beneficiary.
• The remitting branch prepares a Structured Financial Messaging Solution (SFMS) message & sends it to its NEFT
Service Centre.
• The service centre forwards the same to the NEFT Clearing Centre, operated by National Clearing Cell, Reserve
Bank of India, Mumbai, to be included in the next available settlement batch.
• The Clearing Centre sorts the funds beneficiary bank-wise & prepares accounting entries to receive funds from the
remitter banks (debit) & give funds to the beneficiary banks (credit). Then bank-wise remittance messages are
forwarded to the beneficiary banks through the Service Centre.
• The beneficiary banks process the remittance messages received from the Clearing Center & pass on the credit to
the beneficiary’s account.
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6. RTGS
• Real Time Gross Settlement
• You can transfer funds easily & securely in real-time.
• Continuous settlement of funds transfer done individually on an order-by-order basis (without netting).
• For high value transactions with minimum ₹ 2 lakhs.
• You can queue special payments such as tax, hedge funds or cash management well in advance.
• Don’t forget to use the correct TTC (Transaction Type Code) value #1000 specifically allotted for customer
transactions.
Since the funds settlement takes place in RBI books, payments are final & irrevocable.
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7. Scheme Transfer Limits & Service Charges
All inward transactions are free for both NEFT & RTGS.
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8. Scheme Timings
19:00 19:00 19:00 19:00 19:00 19:00
16:30 16:30 16:30 16:30 16:30
14:00
Monday Tuesday Wednesday Thursday Friday Saturday Sunday
AlltimingsinIST
NEFT RTGS
Timings may vary depending on the customer timings of the bank branches.
No operation on weekly holidays, public holidays and 2nd & 4th Saturday.
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9. Scheme Timings (continued)
NEFT
• Any transaction initiated after a designated settlement time would have to wait till the next designated settlement
time.
• All transactions initiated before 17:00 will be settled on the same day.
• All transactions settled in the 18:00 & 19:00 batches on weekdays will be credited either on the same day or next
working day.
• The beneficiary can expect to get credit within 2 business hours from the batch in which the transaction was
settled.
RTGS
• The beneficiary bank is expected to receive the funds in real time as soon as the funds are transferred by the
remitting bank.
• The beneficiary can expect to get credit within 30 minutes to 1 hour of receiving the funds transfer message.
• The remitting bank receives a message from RBI that money has been credited to the receiving bank. Based on
this, the remitting bank can notify the remitter that money has been credited to the beneficiary bank.
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10. How To Use The Scheme
• Remitter’s account number which is to be debited.
• Amount to be remitted.
• Name of the beneficiary.
• Account number of the beneficiary.
• Name of the beneficiary bank.
• IFSC code of the beneficiary bank branch.
• Remitter’s mobile number and/or email ID.
• Sender to receiver information, if any.
Some banks offer NEFT facility through their ATMs.
Customers enjoying net banking facility offered by their banks can also initiate the funds transfer request online.
Customers must be careful when providing the beneficiary’s account number for NEFT transactions; the credit will be given to the
customer’s account solely based on the account number provided in the NEFT remittance instruction/message.
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11. What happens if money is not credited…?
…for some reason like account does not exist, account frozen, etc.
NEFT
• The beneficiary bank will return the money to the remitter bank within 2 hours of completion of the batch in
which the transaction was processed. Once received by the remitting bank, it is credited to the remitter's account.
• If not credited or returned within the stipulated time, then the bank is liable to pay penal interest to the affected
customers.
RTGS
• The beneficiary bank will return the money to the remitter bank within 1 hour or before end of RTGS business day,
whichever is earlier. Once received by the remitting bank, it is credited to the remitter's account.
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12. Indo-Nepal Remittance Facility Scheme
• Send money to Nepal using NEFT.
• A remitter can transfer funds from any NEFT-enabled branch in to Nepal, irrespective of whether the beneficiary
in Nepal maintains an account with a branch in Nepal or not. The beneficiary would receive funds in Nepalese
Rupees.
• There are charges for transferring funds from India to Nepal.
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