NEFT vs RTGS vs IMPS: Know the Difference Between Them

In today’s digital world, transferring money has never been easier. But with various options like NEFT, RTGS, and IMPS, it can get confusing. Which method should you use for your specific needs? Understanding the differences between these three fund transfer services will help you choose the best one.

This article breaks down NEFT, RTGS, and IMPS in simple terms, compares them, and explains when to use each one.

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What is NEFT (National Electronic Funds Transfer)?

NEFT is a nationwide payment system that allows individuals to transfer money between banks in India.

Key Features of NEFT:

• Transfer Speed: Transactions are processed in batches, typically within 30 minutes to 2 hours.
• Timings: Available 24×7, including weekends and holidays.
• Transaction Limits: No minimum or maximum limit.
• Cost: Nominal fees charged by banks (usually ₹1 to ₹25 depending on the amount).
• Settlement: NEFT transactions are settled in batches throughout the day.
• Use Case: Ideal for transferring moderate sums where urgency isn’t critical.

Example: If you need to send ₹5,000 to a friend, NEFT is a reliable and low-cost method.

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What is RTGS (Real-Time Gross Settlement)?

RTGS is designed for high-value fund transfers that need to be completed immediately.

Key Features of RTGS:

• Transfer Speed: Real-time, typically within a few minutes.
• Timings: Available 24×7, including weekends and holidays.
• Transaction Limits: Minimum limit of ₹2 lakh; no maximum limit.
• Cost: Charges may vary between ₹15 to ₹50 depending on the bank and transaction amount.
• Settlement: Transactions are settled individually in real-time.
• Use Case: Ideal for urgent, high-value transactions such as business payments or property deals.

Example: If you need to transfer ₹5 lakh urgently for a business deal, RTGS is the best option.

What is IMPS (Immediate Payment Service)?

IMPS is an instant fund transfer service available 24×7, including weekends and public holidays.

Key Features of IMPS:

• Transfer Speed: Immediate, usually within a few seconds.
• Timings: Available 24×7.
• Transaction Limits: Typically up to ₹5 lakh (varies by bank).
• Cost: Nominal fees ranging from ₹1 to ₹25.
• Settlement: Transactions are settled instantly.
• Use Case: Ideal for small, immediate fund transfers like sending money to friends, family, or paying bills.

Example: If you need to pay ₹2,000 to a vendor on the spot, IMPS is quick and efficient.

Key Differences Between NEFT, RTGS, and IMPS

Here’s a quick comparison to help you understand the differences at a glance:

When Should You Use NEFT, RTGS, or IMPS?

1. Use NEFT when:
   • You’re not in a hurry to transfer funds.
   • The transfer amount is moderate.
   • You want a low-cost option.
2. Use RTGS when:
   • You need to transfer a high amount (₹2 lakh or more).
   • The transaction needs to be done urgently.
3. Use IMPS when:
   • You need to transfer money instantly.
   • The amount is smaller (less than ₹5 lakh).
   • It’s outside regular banking hours or on holidays.

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How to Transfer Money Using NEFT, RTGS, or IMPS

Steps to Use NEFT, RTGS, or IMPS via Net Banking:

1. Login to your bank’s net banking portal.
2. Add Beneficiary (Receiver):
   • Enter the beneficiary’s name, account number, and IFSC code.
3. Select Transfer Method: Choose NEFT, RTGS, or IMPS depending on your requirement.
4. Enter Amount and review details.
5. Confirm Transaction: Verify and submit the transfer request.
6. Receive Confirmation: You will get a confirmation message or email.

Using Mobile Banking Apps:

Most banks offer mobile banking apps that allow you to transfer funds seamlessly using NEFT, RTGS, or IMPS.

Charges for NEFT, RTGS, and IMPS

While many banks have waived online NEFT and RTGS charges, here’s a general idea of the fees for fund transfers:

• NEFT Charges: ₹1 to ₹25 depending on the transaction amount.
• RTGS Charges: ₹15 to ₹50 for high-value transactions.
• IMPS Charges: ₹1 to ₹25 depending on the amount.

Note: Check with your bank for the latest fee structure, as charges may vary.

Benefits of Online Fund Transfers

• Convenience: Transfer money anytime, anywhere.
• Speed: Instant to real-time tr ansfers.
• Security: Encrypted and secure transactions.
• Cost-Effective: Minimal charges compared to traditional methods.
• Trackable: Receive instant confirmation and transaction history.

FAQs on NEFT, RTGS, and IMPS

1. Is NEFT available 24×7?
   Yes, NEFT is available 24×7, including weekends and holidays.
2. What is the minimum amount for RTGS?
   The minimum amount for RTGS is ₹2 lakh.
3. Can I use IMPS for international transfers?
   No, IMPS is only for domestic transfers within India.

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Are there any charges for online NEFT or RTGS?
Many banks have waived charges for online NEFT and RTGS transactions. Check with your bank for details.

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