What are NEFT and RTGS?
NEFT (National Electronic Funds Transfer) and RTGS (Real Time Gross Settlement) are India's two main systems for rupee transfers between bank accounts: NEFT settles in half-hourly batches with no minimum, and RTGS settles each payment individually, with a minimum of Rs 2 lakh. Both run 24x7. Example (invented, for illustration only): a US buyer's payout provider pays an Indian supplier Rs 1,50,000 by NEFT, because it is below the RTGS minimum, and a second invoice of Rs 25,00,000 by RTGS, using the supplier's account number and branch IFSC for both.
- State Bank of India states that RTGS and NEFT both run 24x7, 365 days a year.
- RTGS has a minimum of Rs 2 lakh and NEFT a minimum of Rs 1, and SBI states there is no maximum for either.
- SBI states that the beneficiary bank should credit an RTGS payment within 30 minutes of receiving the message, and a NEFT payment within two hours of the batch.
- Both systems carry rupees only, so a payment from abroad arrives by SWIFT or through a provider that pays out locally in rupees.
How NEFT and RTGS work
Both systems move rupees between bank accounts in India, identified by the account number and the branch's IFSC. The difference is in how they settle. NEFT groups payments into half-hourly batches and settles each batch. RTGS settles each payment on its own, in real time, which is what gross settlement means.
| Point | NEFT | RTGS |
|---|---|---|
| Full name | National Electronic Funds Transfer | Real Time Gross Settlement |
| Settlement | Half-hourly batches | Each payment individually, in real time |
| Availability | 24x7, 365 days | 24x7, 365 days |
| Minimum amount | Rs 1 | Rs 2 lakh |
| Maximum amount | No maximum | No maximum |
| Credit to beneficiary | Within two hours of the batch | Within 30 minutes of the beneficiary bank receiving the message |
| If the credit fails | Returned within two hours of the batch | Returned within an hour or before the end of the RTGS business day |
Source: State Bank of India, RTGS and NEFT FAQs. As published on 29 October 2026.
Rs 2 lakh is 200,000 rupees. Indian amounts are often written with the lakh grouping, so Rs 25,00,000 in the example is 2.5 million rupees, or 25 lakh.
The return times matter as much as the credit times. If the account number and IFSC do not match an account at the receiving branch, the payment comes back to the sender's bank within the times in the table, and the payer has to send it again with corrected details.
Where a business meets NEFT and RTGS
A foreign buyer meets NEFT and RTGS when it pays an Indian supplier in rupees through a provider with local payout. Wise, for example, states that it sends INR via RTGS, NEFT or TPT to rupee accounts in India. The supplier receives a domestic transfer, which its bank credits as quickly as the table shows.
The alternative is a SWIFT wire, which is credited on an Indian bank working day. On the Indian side, RTGS and NEFT run every day, but SWIFT credits, currency conversions and purpose code checks wait for a bank working day. Either way, the supplier's bank needs the purpose of the payment: Indian banks report an RBI purpose code for each inward payment, such as P0102 for export of goods. Our guide to paying suppliers in India compares both routes.
Common mistakes with NEFT and RTGS
- Sending less than Rs 2 lakh by RTGS. RTGS will not accept it. Use NEFT for smaller payments.
- Using the wrong branch IFSC. The IFSC must belong to the branch that holds the account. Take it from the supplier's bank documents.
- Assuming a SWIFT wire runs 24x7. Only the domestic systems run every day. A dollar wire still waits for a bank working day in India.
- Leaving out the purpose. A rupee payout from abroad still needs a clear purpose, which the supplier's bank reports.
Related terms and how Helm handles it
NEFT works like ACH in the United States, settling in batches; RTGS works like Fedwire, settling each payment in real time. Both route by the branch IFSC rather than by a SWIFT code.
Helm pays suppliers by SWIFT and by local rails where available; the account manager confirms the route for rupee payouts, and the rate, fee and expected arrival are shown before you send.
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What is the difference between NEFT and RTGS?
NEFT settles payments in half-hourly batches with a minimum of Rs 1. RTGS settles each payment individually in real time, with a minimum of Rs 2 lakh. Both run 24x7.
Is RTGS faster than NEFT?
Yes. SBI states that RTGS credits should reach the beneficiary within 30 minutes of the message, while NEFT credits arrive within two hours of the batch.
What is the minimum amount for RTGS?
Rs 2 lakh, which is 200,000 rupees. Smaller amounts go by NEFT, which has a minimum of Rs 1.
Do NEFT and RTGS work on Sundays?
Yes. State Bank of India states that both run 24x7, 365 days a year.
Can I send NEFT or RTGS from outside India?
Not from a foreign bank account. A payment from abroad arrives by SWIFT wire, or through a provider that pays out locally in rupees over NEFT or RTGS.
References
- State Bank of India: RTGS and NEFT FAQs
- Wise: INR purpose codes
- Reserve Bank of India: Master Direction, foreign currency accounts by a person resident in India
This guide is general information for businesses, not financial, legal or tax advice. Rules, fees and timings were checked against the sources listed on the review date and may change.