The full form of RTGS is "Real Time Gross Settlement". RTGS can be defined as "as the continuous (real-time) settlement of funds transfers individually on an order by order basis (without netting").

Here the words 'Real Time' refers to the process of instructions that are executed at the time they are received, rather than at some later time. On the other hand "Gross Settlement" means the settlement of funds transfer instructions occurs individually (on an instruction by instruction basis). The settlement  of funds actually takes place in the books of RBI and thus the payments are considered as final and irrevocable.

The full form of NEFT is "National Electronic Funds Transfer (NEFT). The NEFT is a nation wide payment system facilitating one-to-one funds transfer.   Under this system, individuals, firms and corporates can electronically transfer funds from any bank branch to any individual, firm or corporate having an acount with any other bank branch in the country participating in the system.

Thus, we can say that both RTGS and NEFT are schemes started by RBI for the benefit of the customers which allow accounts holders in the banks to electronically  transfer the funds intra-bank.  In the case of RTGS, settlement in on 'Real Time' basis whereas in case of NEFT the settlement in on batch basis and net basis.   There are some other rules, regulations and differences, which we will be discussing below:-

Minimum & maximum amount of remittance under RTGS and NEFT :

Minimum Amount RS 2 lakhs No minimum limit
Maximum Amount No upper ceiling No upper ceiling

Operating hours of RTGS and NEFT ?
NEFT 9:00 AM to 4:00 PM
RTGS 9:00 AM to 3:00 PM

Processing / Service Charges for RTGS and NEFT transactions :
RTGS Upto     Rs.1 Lac. Not exceeding Rs25.00 per transaction + Service Tax
Above  Rs.1 Lac. Not exceeding Rs50.00 per transaction + Service Tax
NEFT UptoRs 5 Lacs. Not exceeding Rs  5.00 per transaction + Service Tax
Above  Rs 5 Lacs. Not exceeding Rs25.00 per transaction + Service Tax

No charges for Inward RTGS/NEFT