RTGS, NEFT charges: Since January 1, 2020, the RBI has asked banks not to charge their savings account holders for NEFT transfers made online, offering a convenient avenue for savings account holders. What exactly are NEFT and RTGS, and how do they differ?

National Electronic Funds Transfer (NEFT)

NEFT is an electronic payment system that enables direct one-to-one payments nationwide. With NEFT, you can transfer funds electronically from any bank branch to an individual’s account in another bank branch participating in the NEFT scheme.You can also use internet banking and mobile banking for NEFT transfers.

Real Time Gross Settlement (RTGS)

As per the RBI, RTGS stands for Real Time Gross Settlement. It’s a system where fund transfers are settled continuously and in real-time, on a transaction-by-transaction basis without netting. ‘Real Time’ refers to processing instructions immediately upon receipt, while ‘Gross Settlement’ means settling funds individually. RTGS is mainly for large value transactions, with a minimum amount of Rs 2,00,000/- and no maximum limit.
According to ET, transactions received up to a certain time are processed in batches in NEFT, whereas in RTGS, transactions are processed continuously on a transaction-by-transaction basis throughout the day.
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Information needed for RTGS and NEFT transactions

The sender needs to provide these details:
1. Amount to be transferred
2. Beneficiary’s account number
3. Name of the beneficiary’s bank
4. Beneficiary’s account holder name
5. Any additional information from sender to receiver, if required
6. IFSC code of the beneficiary’s branch
7. Sender’s mobile number or email address
8. Purpose of the transaction

NEFT and RTGS charges

Banks apply charges for transactions conducted at their branches. Here are the charges for NEFT and RTGS transactions at SBI, HDFC Bank, ICICI Bank, and Punjab National Bank (PNB) as of April 17, 2024, as sourced by ET from the respective bank websites:
SBI: Charges for NEFT and RTGS

ICICI Bank: : Charges for NEFT and RTGS

RTGS (Internet Banking) – Applicable for NRIs as well
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HDFC Bank: : Charges for NEFT and RTGS

RTGS transactions made online have been free since November 1, 2017. If done through HDFC Bank branches, there’s a charge of Rs 15 plus applicable GST.
Kotak Mahindra Bank: : Charges for NEFT and RTGS

PNB: Charges for NEFT and RTGS