Differences between NEFT, RTGS and IMPS: Limit, Charges, Timings, Full Form

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. 

Features of Payment Systems

Before we proceed to check their differences, it’s essential to understand the basic concepts related to these payment systems:

• Fund transfer limit:
  Fund transfer limit means the minimum and maximum amount that can be transferred via a payment system. The amount allowed by NEFT, RTGS and IMPS differs.
• Service availability:
  Certain payment systems are available 24x7, while for others, users have to abide by specific timings. Remitters can initiate fund transfers anytime using these payment systems, but funds are settled only when the service is made available.
• Fund transfer charges:
  Fund transfers have certain charges as decided by the financial institution. Fund transfer charges depend on the transfer speed, amount to be transferred and other terms of a financial institution.
• Fund settlement speed:
  Fund settlement speed refers to the time required to settle the transfer of money from one account to another after it has been initiated.

Differences Between NEFT, RTGS and IMPS

Now, let’s take a glance at the differences between NEFT, RTGS and IMPS:

NEFT, RTGS and IMPS Full Form

Here are the full forms and meanings of the above payment methods:

NEFT

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. 

RTGS

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. 

IMPS 

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. 

NEFT, RTGS and IMPS Limit

Here’s the information regarding the minimum and maximum limit of funds that can be transferred:

NEFT Limit

• The lowest amount you can transfer with NEFT is ₹1. 
• There's no limit on the maximum amount. 
• But as per the Indo-Nepal Remittance Scheme, the maximum amount per transaction should be ₹50,000 for cash-based remittances within India and Nepal.

RTGS Limit

• Here, you need to transfer at least ₹2,00,000 to transfer money via RTGS. There’s no upper limit.

IMPS Limit

• You can transfer with IMPS minimum amount allowed is ₹1, while the maximum amount allowed is ₹5,00,000. 

NEFT, RTGS and IMPS Charges

The details of the transaction charges are as follows: 

NEFT Charges

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. 

RTGS Charges

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.

IMPS Charges

Individual member banks and PPIs determine the transaction charges, which varies from ₹2.5 to ₹15. 

NEFT, RTGS and IMPS Timings

The service timings of these payment systems are as follows: 

• NEFT- 24x7 
• RTGS- 24x7 
• IMPS- 24x7 

How to Choose Between IMPS, NEFT and RTGS?

You should opt for IMPS if:

• You need your funds to be transferred instantly, regardless of the time or day, including holidays.
• You prefer to transfer money digitally via mobile or internet banking platforms.
• The transfer amount ranges between ₹1 and ₹5,00,000.
• You want instant and real-time confirmation of the transaction.

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: 

• Your transaction is not time-sensitive and does not require immediate settlement. 
• You are conducting routine or recurring payments such as rent, fees, or vendor invoices.
• You want minimal to no charges, especially for online transactions.
• You want the option to transfer money through online mode or by visiting the bank.
• The transfer amount can range from ₹1 to several lakhs.

Examples include utility payments, salary transfers, or scheduled fund transfers during banking hours.

You should opt for RTGS if: 

• You are transferring funds above ₹2,00,000.
• The transaction needs to be processed instantly and securely.
• You handle high-value business transactions, property payments, or corporate settlements.
• You require the transaction to be prioritised.

Examples include real estate payments, corporate disbursements, and urgent high-value transfers.

Things to Consider Before Initiating a Fund Transfer

Before you transfer money online via NEFT, RTGS, or IMPS, keep these key points in mind:

• Transfer Speed: For an instant transfer, opt for IMPS or RTGS. NEFT works in batches and may take 30 minutes to 2 hours.
• Transaction Amount:
  • RTGS is best for amounts above ₹2,00,000.
  • IMPS and NEFT are suitable for smaller transfers (starting from ₹1).
• Availability: NEFT, RTGS, and IMPS are all available 24/7, including weekends and holidays. IMPS, however, is more suitable for immediate transactions. 
• Charges: Most banks offer NEFT and RTGS for free if done online. IMPS may carry minimal charges based on the bank and transfer value.
• Correct Details Matter: Enter the beneficiary’s account number and IFSC code carefully, as any mistake could delay transactions or lead to failed transfers.
• Network: NEFT is widely accepted throughout the country. RTGS is available for huge transactions and both the sender's and receiver's bank must be part of RTGS network. IMPS is available through various platforms, such as internet banking, mobile app, SMS banking and ATMs.
• GST: An 18% GST amount applies to all three forms of payment methods. 

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