Dear Reader, this post discusses two important types (NEFT and RTGS) of funds transfer. This information will help you in banking awareness section.
At the end, you will find a short practice test with 5 questions.
- NEFT stands for National Electronic Fund Transfer.
- It is used to transfer funds from one bank to another across the country.
- NEFT is a service by RBI.
- There will be time limits for NEFT. The transfer will effect within the same day if it is within the limit. Else it will take one more working day.
- Minimum amount – Rs. 1.
- Maximum amount – No upper limit, but normally RTGS is used to transfer Rs. 2,00,000 or above.
- Time limit – Each transaction is processed in hourly basis, and it will take maximum 2 hours. The transaction time limit is mentioned below:
Transaction Time No. of. Transactions 8 A.M. to 7 P.M. on the weekdays (Monday – Friday) 12 8 A.M. to 1 P.M. on Saturday 6 On Sundays, bank holidays, RBI holidays No transactions
- The account holder can transfer & receive funds using NEFT. At the same time, the non-customers also can deposit cash at the NEFT up to Rs. 50, 000/- per transaction.
- Using NEFT system is a safe, simple, fastest and secure way of transferring money online.
- The NEFT-enabled banks alone can transfer & receive money online.
- The remitter should have the necessary details like beneficiary name, account number and account type, name and IFSC code of the bank branch.
- IFSC Code: Indian Financial System Code (IFSC) is an alpha-numeric code that uniquely identifies a bank-branch participating in the NEFT system. This code is of 11 digit code.
- Usually, IFSC code will be printed on the cheque books, OR it may be obtained from the branch where the account is maintained as directed by RBI. (IFSC codes will also be available on the website of RBI.)
- RTGS stands for Real Time Gross Settlement, Using RTGS one can transfer fund from one account to another in real time.
- The ‘Real time’ denotes that the transactions complete immediately as soon as they are processed.
- Minimum amount – Rs. 2,00,000.
- Maximum amount – No limit.
- Time limit – The transactions are in real time with a maximum limit of 2 hours. The transaction time limit is mentioned below:
Transaction Time No. of. Transactions 8 A.M. to 8 P.M. on the weekdays (Monday – Friday) 8 A.M. to 3.30 P.M. on Saturday On Sundays, bank holidays, RBI holidays No transactions
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