IMPS Vs NEFT Vs RTGS Know Which is Better

IMPS Vs NEFT Vs RTGS Know Which is Better – Difference Between IMPS, NEFT, and RTGS | Know the Benefits of Instant Bank Money Transfer

Online banking, internet banking, and money transfer have made it easier to move money to and from accounts with just a few clicks. There are three primary methods of money transfer – IMPS (Immediate Payment Service), NEFT (National Electronic Funds Transfer), and RTGS (Real Time Gross Settlement).

IMPS Vs NEFT Vs RTGS
IMPS Vs NEFT Vs RTGS

IMPS Vs NEFT Vs RTGS Know Details

The primary difference between IMPS Vs NEFT Vs RTGS lies in the time they take to process the funds and the maximum amount of money that can be transferred to the beneficiary’s account.

IMPS is an instant payment service based on real-time funds transfer and is available 24×7. It enables real-time interbank transfers on any day of the week, including bank holidays. IMPS is suitable for transferring funds up to a maximum of ₹2 lakhs.

NEFT is another popular method of transferring funds online and is used to process large volumes of funds transfers. It is a batch-wise processing system, which means transfers are made in batches of payments. Transactions under the NEFT system require a maximum of ₹10 lakhs.

IMPS Vs NEFT Vs RTGS
IMPS Vs NEFT Vs RTGS

RTGS allows funds transfer from one bank to another at any point of time within 30 minutes. The funds transfer is done on a gross or “real-time” basis and cannot be reversed. The RTGS system is suitable for high-value transactions, with the minimum threshold set at ₹2 lakhs.

IMPS Vs NEFT Vs RTGS Know Which is Better

IMPS Vs NEFT Vs RTGS The other major differences between these methods include mode of transfer and fees. NEFT and IMPS are fund transfer modes, whereas RTGS is an interbank funds transfer mechanism. Additionally, the fees for IMPS, NEFT, and RTGS are based on the limits and transfer timings.

What is the difference between IMPS, NEFT, and RTGS?

IMPS (Immediate Payment Service): IMPS is an instant interbank electronic fund transfer service that allows you to transfer funds from any bank account in India. It is available 24×7 and can be used for transfers of less than Rs.2 lakhs.
NEFT (National Electronic Funds Transfer): NEFT is a batch-based system that enables electronic transfer of funds between banks. It works on a Deferred Net Settlement (DNS) basis and is available for transfers up to Rs.10 lakhs.
RTGS (Real Time Gross Settlement): RTGS is a real-time, gross settlement system that allows for the transfer of funds from one bank to another on a real-time and gross basis. It is available for transactions above Rs.2 lakhs.

Is the IMPS, NEFT, and RTGS service available 24×7?

IMPS: Yes, IMPS is available 24×7.
NEFT: No, NEFT is only available from 8 am to 7 pm on weekdays and from 8 am to 1 pm on Saturdays.
RTGS: No, RTGS is only available from 8 am to 6 pm on weekdays and from 8 am to 1 pm on Saturdays.

What are the charges associated with IMPS, NEFT, and RTGS?

IMPS: For transactions below Rs.1 lakh, IMPS has a charge of Rs.2.50 plus GST. For transactions above Rs.1 lakh and up to Rs.2 lakhs, the charge is Rs.5 plus GST.
NEFT: NEFT transfers have a charge of Rs.2.50 plus GST for transactions below Rs.10,000 and Rs.5 plus GST for transactions above Rs.10,000.
RTGS: RTGS transfers have a charge of Rs.25 plus GST for transactions below Rs.2 lakhs and Rs.50 plus GST for transactions above Rs.2 lakhs.

How long does it take to complete the money transfer using IMPS, NEFT, and RTGS?

IMPS: IMPS transfers are almost instantaneous and can take a few seconds.
NEFT: NEFT transfers take a bit longer and can take up to two hours to complete.
RTGS: RTGS transfers are the fastest and can take anywhere from 30 minutes to an hour to complete.

What is the minimum amount that can be transferred and the maximum amount per day via IMPS, NEFT, and RTGS?

IMPS: The minimum amount that can be transferred via IMPS is Rs.1, and the maximum amount per day is Rs.2 lakhs.
NEFT: The minimum amount that can be transferred via NEFT is Rs.1, and the maximum amount per day is Rs.10 lakhs.
RTGS: The minimum amount that can be transferred via RTGS is Rs.2 lakhs, and the maximum amount per day is Rs.10 lakhs.

All three methods of online money transfer have their own parameters and limitations, so it’s important to choose the right one depending on the particular requirement. Knowing the difference between IMPS, NEFT and RTGS can help you make an informed decision when it comes to online money transfer.

  1. IMPS (Immediate Payment Service): IMPS is a 24×7 real-time fund transfer service provided by Bank and Financial Institutions, which allows customers to transfer money instantly to any account in India, just by using a mobile number, VPA, or account number and IFSC.
  2. NEFT (National Electronic Funds Transfer): NEFT is a fund transfer mechanism provided by the Reserve Bank of India (RBI) which facilitates an interbank transfer of funds from one account to another. The transfer is made from one bank to another, without having to hold an account in either bank.
  3. RTGS (Real Time Gross Settlement): RTGS is a funds transfer system used in India, which enables customers to securely transfer funds to other banks in real-time. It is a secure, fast and efficient way to transfer funds with minimal waiting period and instant processing.
  4. Maximum Limit: IMPS has a maximum limit of Rs. 2 lakh while NEFT and RTGS has a maximum limit of Rs. 10 lakh.
  5. Transfer Time: IMPS transfers are done almost instantly whereas NEFT and RTGS transfers will take around 2 hours for completion.
  6. Cost: IMPS transfers are generally free of cost whereas NEFT and RTGS transfers involve a certain fee which is set by the respective banks.
  7. Processing Time: IMPS transfers are processed almost instantly, while NEFT transfers are usually processed within 30 minutes and RTGS transfers within 2 hours.
  8. Online Access: All three transfer options are available for online access.
  9. Offline Access: IMPS and RTGS are available for offline access, however NEFT is not.
  10. Security: All three transfer options offer the highest level of security and follow the prescribed standards of RBI.
  11. Origin: IMPS was launched in 2008 by National Payments Corporation of India (NPCI), while NEFT and RTGS were launched in 2004 and 2005 respectively by the RBI.
  12. Applicability: All three transfer systems are applicable to all banks in India, including Co-operative Banks.
  13. National Reach: All three transfer systems have a national reach and can be used to transfer funds to any bank in India.
  14. Credit: IMPS and NEFT transfers provide immediate credit to the recipient’s account while RTGS transfers provide the credit within 2 hours.
  15. Confirmation: All three transfer systems provide real-time confirmation of the transfer once it is completed.
  16. Transfer Mode: IMPS, NEFT and RTGS are fund transfer modes.
  17. Convenience: All three transfer systems offer the convenience of anytime, anywhere banking.
  18. Multiple Transfers: All three transfer systems allow customers to make multiple transfers in a single transaction.
  19. Refund: All three transfer systems offer an instant refund of the amount transferred, in case the transaction fails.
  20. Eligibility: Any resident of India who fulfills the bank’s KYC criteria is eligible to use IMPS, NEFT and RTGS.
IMPS Vs NEFT Vs RTGS
IMPS Vs NEFT Vs RTGS

Summary: IMPS, NEFT and RTGS are all fund transfer modes of transferring funds from one bank to another in India. IMPS transfers are done almost instantly with a maximum limit of Rs. 2 lakh, NEFT transfers are usually processed within 30 minutes and have a maximum limit of Rs. 10 lakh and RTGS transfers have a maximum limit of Rs. 10 lakh and provide credit within 2 hours. All three systems offer the highest level of security, are applicable to all banks in India, have a national reach and provide real-time confirmation of the transfer.