Difference between NIP and NEFT

You may want to make an online transaction in and do not know which one to use, like in Nigeria.  Some bank platforms use different transfer systems to send money locally and internationally.

I may not be a banker, but I know there is a difference. People ask questions like they would like to know the major difference between neft and instant transfer. Most bank have the two form of electronic transfer but can't really find any difference in the two.

1. National Electronic Fund Transfer (NEFT) is an online system for transferring funds of financial institution, especially for the banks in India. This service is used mainly to transfer funds below Rs 100000.
The instant funds transfer system, known as the Real Time Gross Settlement(RTGS) cannot be used for an amount below Rs. 1 lakh by the banks as per the instructions of the banking regulator, the Reserve Bank of India. RBI has asked banks to offer National Electronic Fund Transfer (NEFT) which provided T+0 and T+1 settlement system depending on the time a customer gives instruction to the bank for transferring the fund for small transactions.

2. NEFT is an e-payment platform that is best suited for bulk transfers, for instance, salary upload and takes a minimum of 24hrs to b effective because it has to go thru clearing process

While Instant electronics transfer(NIPs) just like d name is an e-payment platform that is instant,less than 2mins to b effective and its made for single/individual funds transfer

3. The cost: For instance, GTB
Instant transfer is cheaper (35N or so) while NEFT costs 400

Note carefully, that for most transactions to a different bank will cost you N100.