NEFT is a payment system in which transactions are processed in batches, typically with scheduled settlement times throughout the day. It is suitable for transferring smaller amounts and is widely used for various purposes such as salary payments, utility bill payments, and more. RTGS, on the other hand, is a real-time funds transfer system where transactions are processed individually and settled immediately. This system is typically used for high-value transactions that require instant and irrevocable settlement, such as large business transactions or real estate deals.