Reserve Bank of India has introduced a system called National Electronic Funds Transfer System (NEFT) and Real Time Gross Settlement (RTGS) through which fund transfer operation would take place among member Banks and financial institutions (for List of Member bank follow the link below). Our bank is one of the participants in the above 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:-