NEFT, RTGS and IMPS are the most commonly-used methods of electronic fund transfers in India. The Reserve Bank of India (RBI) introduced the NEFT and RTGS, while the National Payments Corporation of India (NPCI) introduced IMPS.
Read on to know the features and differences between NEFT, RTGS and IMPS.
Before we proceed to check their differences, it’s essential to understand the basic concepts related to these payment systems:
Now, let’s take a glance at the differences between NEFT, RTGS and IMPS:
Point of Difference | NEFT | RTGS | IMPS |
Full Form | National Electronic Funds Transfer | Real-Time Gross Settlement | Immediate Payment Service |
Settlement Time | Half-hourly to 2 hours | Real-time | Real-time |
Type of Settlement | In batches | One-on-one settlement | One-on-one settlement |
Service Availability | 24x7, all days | 24x7, all days | 24x7, all days |
Payment Options | Online and offline | Online and offline | Online only (via mobile/UPI/ATM) |
Maximum Time for Settlement | Up to 2 hours | 30 minutes | Immediately |
Transaction Speed | Slower (can take a few minutes) | Fast | Instant |
Transaction Charges |
|
| Varies from bank to bank |
Minimum Transfer Limit | ₹1 | ₹2 lakh | ₹1 |
Maximum Transfer Limit | No limit (₹50,000 for cash-based India-Nepal transfers) | No limit | ₹5 lakh (depends on bank) |
Best Used For | Scheduled/routine payments | High-value urgent transfers | Small, urgent personal transfers |
Reliability | Reliable and secure | Reliable and secure | Reliable and secure |
Managed By | RBI | RBI | NPCI (National Payments Corporation) |
Here are the full forms and meanings of the above payment methods:
The full form of NEFT is National Electronic Funds Transfer. It is an online payment system facilitating one-to-one fund transfers. You can use NEFT to transfer funds electronically from your bank account to that of another person. But you must remember an important factor- NEFT transfers don’t occur in real time.
The full form of RTGS is Real-Time Gross Settlement. If you use this online payment system to transfer money, the amount will get credited to the beneficiary's account in real-time.
The full form of IMPS is Immediate Mobile Payments Services. This online payment system facilitates inter-bank funds transfer system in real-time. An important factor to note is that you can use IMPS 24x7 throughout the year, including bank holidays.
Here’s the information regarding the minimum and maximum limit of funds that can be transferred:
The details of the transaction charges are as follows:
No transaction charge is required for inward transactions that take place for crediting money to beneficiary accounts at destination bank branches and when initiated online. For offline NEFT transfer by visiting bank branches, the charges varies from ₹2.5 to ₹25 plus GST, depending on the bank.
No transaction charges are required for online and inward transactions. However, some charges are applicable for outward transactions. You have to pay ₹25 to ₹50 per transaction when RTGS is done by visiting a bank branch. Do note that GST is applicable on these charges.
Individual member banks and PPIs determine the transaction charges, which varies from ₹2.5 to ₹15.
The service timings of these payment systems are as follows:
You should opt for IMPS if:
Examples include quick personal transfers to repay a friend, sending money on weekends or holidays, or covering emergency expenses.
You should opt for NEFT if:
Examples include utility payments, salary transfers, or scheduled fund transfers during banking hours.
You should opt for RTGS if:
Examples include real estate payments, corporate disbursements, and urgent high-value transfers.
Before you transfer money online via NEFT, RTGS, or IMPS, keep these key points in mind:
NEFT, RTGS and IMPS are widely used payment and settlement systems in India. While the services of these fund transfer systems are available 24x7, NEFT transfers don't take place in real-time, i.e. it takes place in half-hourly batches. While deciding on the payment transfer system, consider timing, network, transaction fee and payment modes available.
Similar Article:
1. NEFT Vs RTGS: Key Differences With Detailed Comparisons
2. NEFT Timings
3. RTGS Timings