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    NEFT Vs RTGS Payments

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    rajeevjpr
    NEFT and RTGS are two common electronic payment systems used in India. NEFT allows smaller transfers with no minimum amount, but funds may take 1-3 days to transfer, while RTGS is for larger amounts over Rs. 1 lakh that transfer in real time. Both require the IFSC code, an 11-digit identifier for the recipient's bank branch. Banks may charge fees for inward NEFT/RTGS transfers. To send or receive domestic payments via NEFT/RTGS, one needs the recipient's account number, name, bank name, branch, and IFSC code. For international wires, the recipient's SWIFT/BIC code and possibly correspondent bank details are required instead of the IF

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    NEFT Vs RTGS Payments

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    rajeevjpr
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    NEFT and RTGS are two common electronic payment systems used in India. NEFT allows smaller transfers with no minimum amount, but funds may take 1-3 days to transfer, while RTGS is for larger amounts over Rs. 1 lakh that transfer in real time. Both require the IFSC code, an 11-digit identifier for the recipient's bank branch. Banks may charge fees for inward NEFT/RTGS transfers. To send or receive domestic payments via NEFT/RTGS, one needs the recipient's account number, name, bank name, branch, and IFSC code. For international wires, the recipient's SWIFT/BIC code and possibly correspondent bank details are required instead of the IF

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    NEFT and RTGS are two common electronic payment systems used in India. NEFT allows smaller transfers with no minimum amount, but funds may take 1-3 days to transfer, while RTGS is for larger amounts over Rs. 1 lakh that transfer in real time. Both require the IFSC code, an 11-digit identifier for the recipient's bank branch. Banks may charge fees for inward NEFT/RTGS transfers. To send or receive domestic payments via NEFT/RTGS, one needs the recipient's account number, name, bank name, branch, and IFSC code. For international wires, the recipient's SWIFT/BIC code and possibly correspondent bank details are required instead of the IF

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    176 views4 pages

    NEFT Vs RTGS Payments

    Uploaded by

    rajeevjpr
    NEFT and RTGS are two common electronic payment systems used in India. NEFT allows smaller transfers with no minimum amount, but funds may take 1-3 days to transfer, while RTGS is for larger amounts over Rs. 1 lakh that transfer in real time. Both require the IFSC code, an 11-digit identifier for the recipient's bank branch. Banks may charge fees for inward NEFT/RTGS transfers. To send or receive domestic payments via NEFT/RTGS, one needs the recipient's account number, name, bank name, branch, and IFSC code. For international wires, the recipient's SWIFT/BIC code and possibly correspondent bank details are required instead of the IF

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    NEFT vs RTGS Payments

    Electronic payments have been implemented by most banks in India using NEFT (National Electronic Funds Transfer) or RTGS (Real Time Gross Settlement) for intra-india payment transactions. Both NEFT and RTGS payment systems use IFSC (Indian Financial System Code) which is a 11 digit unique alpha numeric number assigned to banks participating in these payment systems. If you are using net banking online with indian banks then most probably you would be using NEFT or RTGS payment systems. Here is what the main difference between NEFT vs RTGS. NEFT No mimimum or maximum. Any small amount can be sent with NEFT It is bit delayed usually takes 24 to 72hrs for the funds transfer to take place. NEFT payment settlement takes place 6 times a day (9.30 am, 10.30 am, 12.00 noon. 1.00 pm, 3.00 pm and 4.00 pm) and 3 times during Saturdays (9.30 am, 10.30 am and 12.00 noon). RTGS Minimum Amount is Rs. 1 Lac or more It is the fastest payment method and usually the amount credited to payee account in real time RTGS settlement takes place between 9.00 am to 16.30 pm on week days and from 9.00 am to 12.00 noon on Saturdays.

    Most banks do charge a small fee of Rs.25 to Rs.50 for inward NEFT/RTGS while other banks waive their fee. You have to consult with your bank. More information about NEFT or RTGS can be found on Reserve bank of India website http://www.rbi.org.in WARNING: Not all bank branches in India participate in NEFT/RTGS system. You have to consult your bank for specific information.

    What is IFSC Code


    IFSC code is mandatary for payment transactions involving intra-india NEFT/RTGS payments. IFSC (Indian Financial System Code) which is a 11 digit unique alpha numeric number assigned to banks participating in these payment systems. Some of examples of IFSC code are SBIN0006623 (State Bank of India) ICIC0000037 (ICICI Bank) HDFC0000558 (HDFC bank)

    How to get IFSC Code?


    RBI (Reserve Bank of India) had instructed all banks to print IFSC code in the check leaves given to the customer. If you cannot find one you have to ASK your bank for it. IFSC code cannot be used for foreign payments and only used for intra-india payment transactions. Here are the 4 ways to find out your IFSC code for your bank. 1. Open your checkbook and see whether you can find IFSC code for RTGS or NEFT. 2. Call the customer service of your bank and ask for IFSC code for NEFT or RTGS payment. 3. Visit your official bank website and see whether they have published IFSC codes for their branches. For indian bank websites see below WARNING: DO NOT use IFSC codes published in this website or other third party websites in your payment transfers. IFSC codes are subjected to change from time to time and branch to branch. ONLY your bank can provide you true and correct IFSC code for your payment transaction. If you use incorrect IFSC code your payment might be rejected or delayed or will be penalized for defaulted payments.

    How to Send & Receive Payments (within India)


    Inorder to send or receive payments involving NEFT/RTGS it is mandatory to give the sender IFSC code of your bank. If you are receiving a payment from the sender through online or net banking, give the sender information like

    Account Number Account Name (must match the account name in your bank records) Account Type (Savings/Current/Business) Bank Name IFSC Code

    Here is a sample format. Account Number # ___________________________________ Account Holder Name: ______________________________________ Account Type (Savings/Current) _______________________________________ Bank Name: _______________________________________

    Bank Branch: ______________________________________ IFSC Code: _________________________________________ Amount in Rupees: ________________________________________ Note: It is very important that for these electronic payment systems, the account holder name must match exactly the name with bank records. If not the receiving bank may decline the payment.

    How to Receive Payments to India from a Foreign Country


    If you want to receive a foreign payment from US/UK Banks or from any other country (usually in US Dollars or Euro) then you might want to give the sender in foreign country SWIFT/BIC code of the bank in India where you have account with. Usually this is commonly called International Wire Transfer / TT. Most banks do charge a fee of about USD 25 to USD 35 to process an incoming wire transfer. Inorder to obtain SWIFT/BIC code you have to talk to the manager of your bank and usually the you will need to forward the following information the the payer in foreign country.. .

    Account No Beneficiary Name Beneficiary Addresss Bank Name Bank Address SWIFT/BIC code

    Most bank branches in India dont usually have a direct SWIFT code, instead they will give you correspondent bank (intermediary bank) information to receive inward foreign transfer. It takes about anywhere between 3-5 days for bank in India to receive the foreign payment and once they receive this, your account will be credited in Indian Rupees as per the prevailing exchange rate. You can always visit Official SWIFT Website to check whether your bank have a direct SWIFT code or not. Inorder to receive a foreign wire transfer payment you will need to collect the following information from your bank and forward it to sender in a foreign country. You will need to consult the branch manager of your bank so that he could advice you with specific wire instructions. Beneficiary Account No# ______________________________________ Beneficiary Name: ______________________________________ Beneficiary Address: (with postal code and country)

    ____________________________________________________________ _____________________________________________________________ _____________________________________________________________ Beneficiary Bank Name: ___________________________________ Beneficiary Bank Address: (with postal code and country) _____________________________________________________________ _____________________________________________________________ _____________________________________________________________ Correspondent Bank Details(optional) __________________________________________ _____________________________________________ _____________________________________________ SWIFT/BIC Code: ____________________________________ Amount in USD or Foreign Currency: ________________________________

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