Difference Between NEFT, RTGS & IMPS

The introduction of various payment systems in India has made it easier to transfer money. Unlike earlier, you can transfer money from one bank account to another almost immediately. Due to various payment options that are available, money can be sent and received from anywhere at any given time.

Different Methods to Transfer Fund Online

The three different methods by which money can be transferred online are mentioned below:

  • Immediate Payment Service (IMPS)
  • National Electronic Funds Transfer (NEFT)
  • Real-Time Gross Settlement (RTGS).

IMPS

The transfer of funds is completed immediately via IMPS. You can transfer money 24x7 by using this method. IMPS can be completed by using internet banking or mobile banking. Various digital banks in India use IMPS services to transfer money. Depending on the bank, the transaction charges may vary.

NEFT

Under NEFT, you can transfer funds from one bank branch to another bank branch that is participating under the scheme. However, NEFT transactions take longer when compared to IMPS.

RTGS

Another payment mode that occurs in real-time and on a gross basis is RTGS. RTGS is mainly used for higher value transfers that require immediate clearance. RTGS transactions can be completed only during hours.

Differences between NEFT, IMPS, and RTGS

Category NEFT RTGS IMPS
Minimum transfer value Rs.1 Rs.2 lakh Rs.1
Maximum transfer value Depends on the customer segment No upper limit Rs.2 lakh
Type of settlement Batches One-on-one settlement One-on-one settlement
Speed of settlement 2 hours (subject to cut-off timings and batches) Immediately Immediately
Service availability 24/7 Depends on the bank 24/7
Online/Offline Both Both Online

Important Things to Consider Before Initiating a Fund Transfer

  • Timings: Depending on the bank, the timings for each transfer will vary. In the case of RTGS, depending on the bank and the location, the operating hours will vary. IMPS and NEFT payment modes are available 24x7.
  • Transaction Fee: A separate fee is levied for the transfer of money. However, in case you are receiving the money, no fee is levied.
  • GST: As per the latest norms, GST will be applicable on the transaction fee.
  • Network: Both the banks must be part of the scheme for the transfer to take place.

Important Terms

Given below are some of the important things to know when using the different methods to transfer money:

  • Fund Transfer Charges: Any transfer of money will involve certain charges. According to the RBI, the banks decide the charges that are levied for different fund transfers.
  • Fund Settlement Speed: Depending on the type of transfer, the fund settlement speed will be different. The amount of time that is required to transfer money from one bank account to another bank account is the fund settlement speed.
  • Service Availability: Depending on the type of transfer, the timings will vary. IMPS and NEFT are available 24x7, while RTGS operates only during banking hours.
  • Fund Transfer Limit: The amount of money that can be transferred is the fund transfer limit. The limit will be different for different payment methods.

Check IFSC Code for Top Banks:

FAQ's of NEFT, RTGS & IMPS

  1. What is the minimum amount for an IMPS transfer?

    Ans: The minimum amount transferable through an IMPS transfer can be as low as Re.1.

  2. Are there any extra charges for an IMPS transfer?

    Ans: The Finance Ministry of India, in order to encourage digital transactions, has removed any kind of additional fee for an IMPS mode of money transfer.

  3. Which mode of payment between NEFT or RTGS is faster?

    Ans: The faster form of payment depends on the urgency and the amount of your transaction. If you have a transaction above Rs.2 lakh, RTGS is a faster and more effective mode of payment. However, for any payments which are of lower amounts, NEFT is a more efficient mode of payment.

  4. Is RTGS mode of payment safe?

    Ans: RTGS is a highly safe and secure mode of payment which is monitored by the government. It is even more secure as it is used majorly for money transfers of higher amounts.

  5. How many times can NEFT transactions be done in a day?

    Ans: NEFT transactions can be made any time of the day between 8 a.m. in the morning to 6:30 p.m. in the evening. There is no limit to the number of NEFT transactions in a day.

Other IFSC Related Article

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IMPS BHIM AEPS
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News About NEFT, RTGS and IMPS

  • RBI is now pushing for retail payments for new umbrella entities

    The Reserve Bank of India (RBI) has now come out with a lot of guidelines for setting up new NPCI-like umbrella entities for retail digital payments. The regulator now wants more NPCIs to popularise and bring innovation into the digital payments space in India. The draft framework had been released in February 2020 for a lot of public comments. After having taken into account the industry feedback, the banking regulator has now released the guidelines. There has been be no big corporate who has publically expressed interest in setting up a new entity and a few industry sources have said that Reliance Jio and Paytm, have seen see a lot of potential in this industry.

    21 August 2020

  • UFBU calls for an all India bank strike on December 26

    The United Forum of Bank Unions (UBFU) has called for an all India Bank strike on December 26. The strike has been called by the unions to oppose the Government’s decision to amalgamate Bank of Baroda, Vijaya Bank and Dena Bank. It needs to be mentioned here that the United Forum of Bank Unions (UFBU) represents nine top unions of the country.

    C.H Venkatachalam, the General Secretary of All India Bank Employees Association (AIBEA) informed of the development. It is noteworthy to mention here that the Department of Financial Services  (DFS) is expected to take a review about the progress made with the regard to the amalgamation of the three public sector banks.

    17 December 2018

  • IMPS, RTGS, NEFT Transactions Charges of SBI Explained

    The country’s largest bank namely State Bank of India (SBI) provides its customers various options like National Electronic Funds Transfer (NEFT), Real-Time Gross Settlement (RTGS), Immediate Payment Service (IMPS) to make fund transfers. However, many customers restrict themselves from using the facilities as the bank charges them a fees for availing the facility. Here, we take a look at the way the bank charges:

    IMPS charges: SBI charges its customers using IMPS facility based on four slabs. These are - transactions upto Rs. 1,000 are devoid of any charges while transactions between Rs. 1,001 and Rs. 10,000 attract a charge of Rs. 1 plus charges. Transactions between Rs. 10,001 and Rs. 1,00,000 draw a charge of Rs. 2 along with charges while transactions which are between 1 and 2 lakh draw a charge of Rs 3 plus charges.

    NEFT charges: NEFT can be availed both at the branches as well as online. However, the charges are different for transactions made online and at bank branches. As for online transactions, SBI charges up to Rs. 5 plus GST. For transactions done through branches the bank charges upto Rs. 25.

    RTGS charges: RTGS transactions can also be made both online and through bank branches. For transactions made online, the bank charges up to Rs. 10 plus GST and Rs. 56 for transactions done through branches.

    11 December 2017

Display of any trademarks, tradenames, logos and other subject matters of intellectual property belong to their respective intellectual property owners. Display of such IP along with the related product information does not imply BankBazaar's partnership with the owner of the Intellectual Property or issuer/manufacturer of such products.

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