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

The difference between NEFT and RTGS and IMPS lies mainly in transfer limits, settlement speed, and purpose of use. NEFT (National Electronic Funds Transfer) and RTGS (Real-Time Gross Settlement) are RBI-managed systems, while IMPS (Immediate Payment Service) is operated by NPCI. All three allow electronic fund transfers 24x7, but differ in speed, charges, and suitable use cases.

Key Highlights:

• NEFT: Best for routine/scheduled payments. The minimum transfer amount via NEFT is ₹1, while there is no maximum limit on transactions.
• RTGS: Best for high-value urgent transfers. The minimum transfer amount via RTGS is ₹2 lakh, while there is no maximum limit on transactions.
• IMPS: Best for instant personal transfers. The minimum transfer amount via IMPS is ₹1, while the maximum limit is ₹5 lakh (depending on the bank).

Differences Between NEFT, RTGS and IMPS

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

What are the NEFT, RTGS and IMPS Full Forms?

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

The following is the difference between NEFT and RTSG and IMPS minimum and maximum fund limit:

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 difference between NEFT and RTSG and IMPS 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. 

The difference between NEFT, RTGS and IMPS lies in their transfer speed, minimum/maximum limits, and best use cases. NEFT suits routine payments, RTGS is ideal for high-value real-time transactions, while IMPS ensures quick, small-value transfers anytime. Understanding these differences helps individuals and businesses select the most cost-effective and efficient fund transfer method.
Similar Article:
1. NEFT Vs RTGS: Key Differences With Detailed Comparisons
2. NEFT Timings
3. RTGS Timings