(i) NEFT : National Electronic Funds Transfer (NEFT) is a country wide system by which an individual, firm or company can electronically transfer funds from any bank branch to another individual, firm, or company having an account with any other bank branch in the country. The funds transfers take place at a particular period of time. All transfers are held till that time.In case one does not have a bank account, the maximum amount that can be transferred through NEFT system is ₹ 49999.
The receiver of funds has to pay no charges.
(ii) RTGS : Real Time Gross Settlement (RTGS)
It is a funds transfer system under which transfer of funds takes place from one bank to another on a 'Real Time' and 'Gross' basis. Settlement on 'Real Time' means there is no waiting period. The transaction is settled as soon as it is processed. 'Gross' settlement means the transaction is made on one to one basis without bunching with any other transaction. It is more instant settlement system used mainly for high volume payment.
RTGS is not available at all bank branches in India. This facility is provided only by CBS bank branches. The minimum amount in a RTGS transaction is two Lacs.