NEFT and RTGS are two modes of fund transfer available in banking. Here are the differences between NEFT and RTGS:

NEFT (National Electronic Funds Transfer):

• Used for transferring small to large amounts of money.
• Transactions are settled in batches, and presently, NEFT operates in half-hourly batches.
• No minimum or maximum limit on the amount to be transferred.
• Settlement time is around 2 hours.
• Suitable for transactions of smaller values.

RTGS (Real-Time Gross Settlement):

• Used for high-value transactions that need immediate clearing.
• Transactions are settled one-on-one, and the settlement of funds happens instantaneously and in real-time.
• Minimum amount to be remitted through RTGS is Rs. 2 lakhs.
• No upper ceiling on the amount to be transferred.
• Suitable for transactions of larger values.

In summary, NEFT is used for smaller transactions that do not require immediate clearance, while RTGS is used for larger transactions that require immediate clearance.