NEFT vs RTGS: Complete Difference Explained in Hindi Which Transfer Method Should You Use in 2026?
If you have ever used net banking in India, you have come across three payment options: NEFT, RTGS, and IMPS. While most people use them interchangeably, each method works differently and is suited for specific types of transactions. Understanding the NEFT or RTGS difference in Hindi is particularly valuable for the millions of Hindi-speaking bank customers in India who want to make smarter, faster, and cost-effective money transfers.
What is NEFT? Full Form and How It Works
NEFT stands for National Electronic Funds Transfer. It is an RBI-governed electronic payment system that allows individuals and businesses to transfer money from one bank account to another across India. NEFT operates on a Deferred Net Settlement (DNS) basis, meaning transactions are not processed one by one; instead, they are grouped into batches and settled every 30 minutes throughout the day, resulting in up to 48 settlement cycles daily.
NEFT is available 24 hours a day, 7 days a week, including public holidays. Since January 2020, the Reserve Bank of India has made online NEFT transfers completely free for savings account holders, a significant policy change that makes NEFT the most economical option for routine transfers.
NEFT is best suited for:
Monthly salary disbursements and payroll processing
EMI payments, utility bill payments, and subscription fees
Rent payments and recurring vendor payments
Transfers of any amount, there is no minimum limit, even Rs. 1 can be transferred
What is RTGS? Full Form and How It Works
RTGS stands for Real Time Gross Settlement. As the name suggests, it is a real-time payment system where funds are transferred on a gross basis, meaning each transaction is settled individually and immediately without waiting for other transactions. This makes RTGS the fastest interbank transfer method available in India.
The key distinction of RTGS is its minimum transfer threshold of Rs. 2,00,000 (two lakh rupees). Transactions below this amount cannot be processed through RTGS. Since December 2020, the RBI has made RTGS available 24×7, including on bank holidays, making it a reliable option for urgent, high-value transactions at any time of day.
RTGS is best suited for:
Property and real estate purchases where immediate fund confirmation is required
Large corporate and B2B vendor payments
Time-sensitive transactions above Rs. 2 lakh where delay is not acceptable
Stock market settlements and mutual fund transactions above the threshold
NEFT vs RTGS Charges in 2026
Understanding the cost of each transfer method helps you choose more efficiently:
Online NEFT: Completely FREE for all savings account holders mandated by RBI since January 2020
Online RTGS: Also FREE when done via internet banking or mobile banking
Branch NEFT: Banks may charge a nominal fee, typically Rs. 2 to Rs. 25, depending onthe amount
Branch RTGS: Rs. 20 + GST for Rs. 2–5 lakh; Rs. 45 + GST for amounts above Rs. 5 lakh (RBI capped rates)
Inward transactions (receiving money): FREE for both NEFT and RTGS, no charge to the beneficiary
NEFT vs RTGS vs IMPS: Which One Should You Choose?
India's digital payment ecosystem offers three primary interbank transfer methods. Here is a quick decision framework:
Choose NEFT when the amount is below Rs. 2 lakh, and there is no urgency free, reliable, and widely accepted
Choose RTGS when the amount is Rs. 2 lakh orabovev,e and you need instant cred, Â ideal for property deals and urgent business payments.
Choose IMPS when you need instant transfer of any amount (up to Rs. 5 lakh on most platforms) via mobile banking, best for quick peer-to-peer transfers.
Choose UPI for small daily transfers up to Rs. 1 lakh, fastest and most convenient for everyday use.
How to Do NEFT and RTGS via Net Banking Step-by-Step
The process for both NEFT and RTGS through internet banking is nearly identical:
Log in to your bank's net banking portal or mobile app
Navigate to 'Fund Transfer' and select 'Other Bank Transfer.'
Add the beneficiary: enter account number, IFSC code, name, and bank
Wait for beneficiary activation (usually 30 minutes to 4 hours for first-time additions)
Select NEFT or RTGS as the transfer mode based on your amount and urgency
Enter the amount, add a payment remark, and confirm with OTP
Save the transaction reference number for tracking
ConclusionBoth NEFT and RTGS are safe, RBI-regulated, and completely free when done online. The right choice simply depends on your transfer amount and how urgently the funds need to arrive. For a comprehensive breakdown including bank-wise RTGS branch charges, common mistakes to avoid, and a complete Hindi-language explanation, read the full guide on NEFT or RTGS Difference in Hindi on MortgageRio.in India's trusted personal finance and mortgage resource.
