RTGS and NEFT Fund Transfers

The two options NEFT ( National Electronic Funds Transfer) and RTGS (Real-Time Gross Settlement) offered by the RBI allow electronic transfer of funds from the remitter, who has an account in one bank, to the beneficiary, who has an account in any other bank/branch. The transfer can be carried out using the Internet banking facility.

Activation

The facility for making third-party payment using Internet banking should be activated for conducting transactions through NEFT or RTGS.

Beneficiary

The person to whom the payment is to be made needs to be added as a 'beneficiary' and his bank account details provided in order to transfer the funds. These include the name of the beneficiary account holder, account number, bank and branch name, and the IFSC code of the beneficiary bank branch.

Processing

The bank requires 12-24 hours for authenticating the details of the beneficiary. After this is done, the new beneficiary is activated and the funds can be transferred to the specified account.

Transfer

Select the type of transfer option (NEFT or RTGS), beneficiary name, amount, and the reason/description of transfer. On submission of the details and the security transaction password, the transfer instruction is processed. The NEFT transfer takes place in batches and the RTGS transfer is carried out on a real-time basis.

Points to note:

• The minimum amount that can be transferred by RTGS is Rs 2 lakh. There is no such limit for transfer through NEFT.
• NEFT is settled in batches at times defined by the RBI. RTGS transactions are settled continuously as and when they are put through.
• The transfer of funds through NEFT and RTGS can also be carried out by submitting the remittance form at the remitter's bank branch.