With the advent of techno moment, everything is available online. E-money is trending and we all believe and follow internet banking very easily. Understanding these technological changes in bank management is excellent for us in money management.

Before understanding how to transfer funds through NEFT and RTGS, it is important to understand the basic differences between the two.

Have you heard about batch processing and online processing? These are basically two ways in which the application updates the data depending on the nature of the processing.

In batch processing, data is processed during the working day, and then batch-processed. Therefore all the collected data is processed at once. Batch processing can occur, for example, at the end of the day when computing capabilities are not required for other tasks. This type of process can take a long time to process.

Whereas, in online processing data is processed immediately while it is entered. The user only has to wait a short time for response. This type of processing enables the user to provide the input and get the response of the processing immediately.

Now, you may ask what is the need to explain all this? This is because RTGS and NEFT are somehow related to online and batch processing.

Let’s talk about RTGS first.



The Real Time Gross Settlement (RTGS) transaction is an example of an online online process because like the processing online process, RTGS transactions take place instantly, i.e. in real time. In RTGS transactions, compromises are made one by one so the user just has to wait a short time for a reply.

And NEFT?



Well, the National Electronic Funds Transfer (NEFT) transaction is an example of batch processing in which the transaction takes place in batch, i.e. a certain number of transactions are initiated for processing. Only after the processing of those transactions will the second batch of transactions be initiated for processing.


How to transfer funds through NEFT and RTGS?


The most important thing you should keep in mind when transferring money through RTGS or NEFT is that your bank account should have a net banking facility.

The bank will then ask you to add a beneficiary to your account before transferring funds. After adding the beneficiary, you should take note of her account number along with her account number, IFSC code, bank and branch name as per bank account details.

After all this is done, you will get a message that the beneficiary has been added and then the funds can be easily transferred.

Difference between RTGS and NEFT?