Different Bill Payment Methods you can Adopt this Year

Different Bill Payment Methods you can Adopt this Year – In India, there are various ways in which you can transfer money online including National Electronic Fund Transfer (NEFT), Real Time Gross Settlement (RTGS), and Immediate Payment Services (IMPS). Of all these methods, the most popular are NEFT and RTGS and they are available to users to conduct their online banking payments and other transactions. Considering their significance and high usability, it is imperative to understand the basic meaning of these terms and their differences.

Bill Payment Methods, Online money transfer, Online payment, Online bill payment, Online transaction

What is NEFT?

The NEFT full form is National Electronic Funds Transfer. It is a quick electronic method of transferring funds online and, in India the Reserve Bank of India (RBI) regulates it.

It is a feature provided by most banks via the Internet and mobile banking. The basic requisite for conducting a transaction is the beneficiary details like name, account number and type of account and the name and Indian Financial System Code (IFSC) of the bank.

This service is available round the clock and is processed in separate batches.

 What is RTGS?

Next comes this one on our list of various online bill payment methods. The acronym ‘RTGS’ stands for Real-Time Gross Settlement.

People should use this payment method for very high transactional amounts where one needs to transfer funds immediately.

While there may be no cap on the maximum limit of money to be transferred, the minimum amount is Rs. 2 lakhs.

Just like NEFT, an RTGS transaction also requires details like the name, account number, and type of account of the beneficiary along with the Indian Financial System Code (IFSC) of the bank.

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Difference Between NEFT and RTGS

The fundamental difference between NEFT and RTGS is that payments made via RTGS are performed on gross settlement and NEFT transactions are conducted on a net settlement basis.

Let’s check out the basic differences by comparing the two major modes of payment:

1. Charges :

It is quite crucial to understand the charges levied on the two modes before we decide which method to select. As per the RBI rule from January 2021 while using NEFT, usually no charges are imposed if the transaction is done online.

On the contrary, some minimal charges may be applicable if a bank initiates this process offline. However, for RTGS fund transfers, the bank levies no charges.

2. Timings :

While conducting NEFT and RTGS transactions online, there is no restriction on the timing. Both the services are available by banks 24 X 7 and all days of the year.

However, when conducting an offline NEFT transfer, the customer may have to follow the rules and timings of the particular bank initiating the transaction.

3. Limit :

As far as NEFT transactions go, there is essentially no minimum or maximum limit to the transfers conducted by customers. Banks can allow businesses to conduct a NEFT transaction with any amount easily and conveniently.

In case of RTGS transactions, banks impose a minimum amount of Rs. 2 lakhs per transaction but there is no maximum limit.

However, it should be noted that some particular banks might set a maximum limit as per their rules.


Looking at the above stated differentiations, NEFT and RTGS are quite different that a customer must be aware of before conducting any online transactions.

If the transfer is a small amount and you are not in a hurry to complete it, then NEFT is the way to go. Alternatively, if you have to transfer huge funds immediately, then RTGS is the ideal choice of transfer.

About Kiran Raj Singh

Kiran born and brought up in Mumbai is the founder of beautifulhamesha.com. She is a Management graduate and beauty lover by heart. Kiran’s passion for make-up and beauty products motivated her to start beauty website. She started JAM Infotech online Pvt Ltd in 2016. She is married and has a beautiful daughter, Anika. She loves shopping, buying new beauty products, applying make-up in her free time.

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