No transaction charges on NEFT, RTGS – Know what is NEFT and RTGS

New Delhi: The Reserve Bank of India has decided to do away with charges levied on National Electronic Funds Transfer (NEFT) and Real Time Gross Settlement (RTGS) transactions, and will soon instruct all the banks to follow suit.

What is RTGS?

RTGS is a financial transaction system, where there is continuous and real-time settlement of fund transfers, individually on a transaction-by-transaction basis. RTGS transactions or transfers have no amount cap.

What are the operating hours under RTGS?

In its order last month, the Reserve Bank of India has decided to extend the usage timings for `Real Time Gross Settlement` (RTGS) system from June 1 for customer transactions (initial cut-off) in from 4:30 pm to 6:00 pm.

What is the minimum amount to be remitted through RTGS?

The minimum amount to be remitted through RTGS is Rs 2 lakh with no upper or maximum ceiling.

What are transaction charges on NEFT and RTGS?

The Reserve Bank levies minimum charges on banks for transactions routed through its RTGS meant for large-value instantaneous fund transfers and the NEFT System for other fund transfers. Banks, in turn, levy charges on their customers.

What is NEFT?

NEFT is a nation-wide payment system facilitating one-to-one funds transfer. Under this Scheme, individuals, firms and 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.

Individuals, firms or corporates maintaining accounts with a bank branch can transfer funds using NEFT.

What is the minimum amount to be remitted through NEFT?

There is no minimum or maximum limit on the amount of funds that could be transferred using NEFT. But the maximum amount per transaction is limited to Rs 50,000 for cash-based remittances within India and also for remittances to Nepal.

What are the operating hours under NEFT?

There are twenty three half-hourly settlement batches run from 8 am to 7 pm on all working days of week, except for 2nd and 4th Saturday of the month.

What is the difference between RTGS and NEFT?

NEFT is an electronic fund transfer system in which the transactions received up to a particular time are processed in batches. Contrary to this, in RTGS, the transactions are processed continuously on a transaction by transaction basis throughout the RTGS business hours.