Difference Between EFT and RTGS

Edited by Diffzy | Updated on: April 30, 2023


Difference Between EFT and RTGS

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Network Banking has enabled a convenient and easy life for its clients. Banks have often proved to help people in difficult circumstances sustain a livelihood. It also helps small businesses to prosper and sustain competition that takes place among the people and society. It has also saved enough time for other purposes, and there are no more long queues or waiting required anymore. Not even visiting banks frequently is necessary anymore. There are many modes of electronic transfer that occur in banks on a daily basis. It depends on the scheme you have been entitled to in the bank that determines the condition for the fund to be transferred. This is what makes electronic fund transfer, or EFT, different from a real-time gross settlement, or RTGS. Both ensure the transfer of money with the least time and effort. 


EFT, or electronic fund transfer, refers to money transfers that are made by mobile phone applications or internet banking, which can be used by people to send or receive money from one account to another. As the name suggests, it's an electronic or digital transfer and hence does not require physical presence. You may be only required to enter in the details about your bank that include the personal identity pin (PID) or password that enables you to make every transfer highly secured. Once the requests for transfers are processed, the transfers are made as a batch at the end of the day. This is the main difference between EFT and RTGS. RTGS involves real-time money transfers and is processed instantly as the request is processed. Furthermore, the amounts that can be sent or received by these modes of transfer differ. 

Difference Between EFT and RTGS in Tabular Form

Parameters of comparison Electronic fund transfer or EFT Real time Gross Settlement or RTGS
1. Definition An electronic or digital form of banking that allows customers to transfer funds between bank accounts. Real time transfer helps people to make urgent transfers of large amount in no time.
2. Principle Transfers all money requests made in a day by the end of the day. Transactions are processed instantly to reach the recipient’s account or vice versa
3. Amount limit  The amount that can be sent in a day is 50,000 rupees. However, any amount less than this may be sent or received using this transfer service. Usually include transfers of more than a million. It is typically used to process large amounts of data transfers.
4. Transaction Transaction in batches, sets, or series. Hence, more than one transaction can be made at a time.  Individual transactions are made and are instant with the requests made by the clients.
5. Required time for Processing  Processing take place by the end of the day, usually in a batch of transfer requests processed altogether. . Instantly,

just like the name indicates. It is a real-time transfer.

6. Suitable for Used by the general public, usually for small money transfers. Transferring a large sum of money (more than two lakhs) is common. it involves exchange and transfer between businessmen for purchase, selling, and marketing purposes.


7. Access Using internet banking, each bank has its own website that is responsible for offering services to its clients. The bank is open 24 hours a day, seven days a week.
8. Efficiency More relevant or urgent transfers may be done instantly or in real time When compared to electronic fund transfers, this method is more efficient and instant.
9. Advantages Make even the smallest amount of money transfers possible by limiting the timeline to one working day. Large sums could be transferred with more security and privacy assured.
10. Disadvantages  Banks hold the requests for a period of time until they process all requests together. There is a minimum amount for which this transfer could be used.

What is EFT?

Electronic Fund Transfer refers to the mode of transfer often preferred for sending or receiving small amounts of money between bank accounts of people. Clients make requests online, net banking, or by accessing different branches. All requests made in a day are held for a timeline, which is finally transferred at the end of the day. Hence, this mode of transfer may take quite some time for the recipient to receive the amount of money sent. Still, completing a transaction in 24 hours, or just a working day, is still amazing as it can be done just sitting at home using your mobile phone application. This transfer allows money exchange to be more convenient, easier, and faster for its clients.

There is no minimum amount set to bend in this mode. However, the maximum that you can use this mode of transfer to send is fifty thousand rupees per day (50,000 Rupees.).

Up to twelve transactions can be made in a batch.

Usually, transfers are made through the ACH network.

There are many possible ways to transfer money electronically from one account to another.

What is RTGS?

RTGS, or Real Time Gross Settlement, is a money transfer mode used preferentially for large sums and for immediate transactions. Once the request for the transaction is made, the transaction takes place immediately, despite the large amount. Every request for a transaction is made separately, unlike that of EFT, which makes transaction settlement of all requests made in a day in batches. For the same reason, you need not wait for the bank to hold your request for a timeline or in a queue and the recipient will receive the money instantly and in real-time.

It primarily focuses on large amounts of transfers

The minimum base amount for which this service may be accessed is two lakh rupees (2,00,000 Rupees.). However, it might require you to be entitled to a specific scheme of bank services to access this service. Even though both are equally safe and secure, RTGS processing is relatively faster than EFT. However, personal caution is demanded by any transfers that are made through websites, online banking, or applications as they have high risks of theft. Hence, it must be ensured that the secret pin, personal identity, customer ID details, and others remain safe with their owners and avoid unnecessary disclosure to others.

This can ensure greater safety while the transaction is being made.

Continuous transactions are possible in this mode.

The recipient's reach of the transfer can be confirmed in seconds by a message, and in 30 minutes following the message, it is assured. 

Differences Between EFT and RTGS in Points


A set of processed requests for money transfers are made together in a batch by the end of the day in the EFT, or electronic fund transfer, mode of money transfer. It might take a working day if you process the requests on a bank holiday. 

Whereas, in the RTGS mode of transfer, we have an instant reach into the recipient account, and cash is instantly removed from the sender's account. It involves large amounts of transactions only, with a minimum limit of the amount that can be sent or received using this mode of transfer. 

Amount limit 

Using an electronic fund transfer mode of transaction, a client can transfer up to fifty thousand (50,000) Indian rupees in a day. However, any amount below that could be transferred depending on the personal interests of the client. There is no minimum amount of money required to use this transfer mode. 

On the other hand, a person can transfer large sums of up to two lakhs using the RTGS, or real-time gross settlement, method of bank money transfer. It usually only involves large or large amounts of transfers, and it may sometimes require some scheme entitlement to access this service. 

Processing time

The processing is completed all together at the end of the day. Also, the reach is not instant in the case of the electronic fund transfer method. The bank may hold the transaction request for a timeline before it is actually sent. A total of twelve such requests can be made per day, which can be processed in a batch. 

Whereas, in RTGS transfer modes, the reach to the recipient is instant. Just like the name suggests, it is a real-time transfer with gross amounts. 

Suitable for

EFT is the basic mode of transfer made by ordinary people, usually with small amounts transferred between family and friends, mostly for personal use only. 

RTGS, on the other hand, is frequently preferred by contractors, traders, or business affairs that require large sum transfers from one account to another in a short period of time. it is important that these large sums are transferred on a secured pathway. This is highly ensured for the clients while using these modes of transfer. They are usually used by businessmen to pay fees to a college or for other property-related causes.  


Access by mobile phone application or net banking may require only proper internet connectivity as a basic necessity.

RTGS, or real-time gross settlement,

It also uses internet banking services or applications, but it may be necessary that the account has an entitlement to these services under its scheme.


This has resulted in a paperless transfer, making it easier and more convenient for people to exchange and transfer money with the least amount of expense.

It saves money and avoids the requirement to access the bank, with its long waiting time and concerns about the bank's working hours.

Urgent transfers with deadlines or of important concerns may be made through this mode of transfer, as providing cheques and other forms may consume more time than these methods take.

People with a proper network connection can use these to receive all bank services while sitting at home, requiring less effort and time from their clients. In addition, transactions can be completed in seconds rather than days.


In both RTGS and EFT fund transfers,you must follow a transaction limit on every transfer. And also, entitlements to several schemes may be necessary to access all modes of bank transfers available to a client, especially for using RTGS transfer services.

The bank might hold the request before it actually processes it in the case of EFT transfers. And hence, it may not be preferred for concerns or reasons that require urgent or immediate reach of money to the recipient account. A minimum of one working day will be required as all the transaction requests for a day are collected and sent in batches, which might take some time in queue.


Both formats of electronic transfer have enabled a convenient and time-saving life offered to their clients. Banks' working time, waiting in long queues, and accessing the nearest branch; neither of these is required anymore due to the technological advancements made in the money and banking industry. 

Banks have always supported humans to live a sustainable life, especially in a competitive society or business where financial stability is a key basic to existence and establishment. Every service offered in bank branches is now at the fingertips of the clients, which you can access simply by downloading a mobile phone application or just using net banking. Only good internet connectivity may be a necessity in this case.

 It has also saved a lot of time in people's daily lives, as they no longer need to carry cash in their hands. Instead, they can opt for cashless money transfers on their way. It can be accessed anywhere and anytime, increasing its reach and adaptability to different daily life circumstances. An electronic fund transfer can be used to send, receive, or deposit money from one account to another.

An instant transfer of even hefty sums is ensured. Also, high security and privacy are enabled for its users. Because control usually remains in the hands of its clients, it is critical to keep the secret pin codes and one-time passwords safe from theft. We can confirm an instant reach by the messages that show the amount you received. Such net banking methods can also be used to check balances, request additional services, cancel any existing services, and many more.



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"Difference Between EFT and RTGS." Diffzy.com, 2024. Thu. 16 May. 2024. <https://www.diffzy.com/article/difference-between-eft-and-rtgs-97>.

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