Transferring money between bank accounts has become faster and simpler with the introduction of modern payment systems like NEFT (National Electronics Funds Transfer), RTGS (Real-Time Gross Settlement), and IMPS (Immediate Mobile Payment Service).
NEFT, RTGS, and IMPS each serve different needs based on the speed, transaction value, and convenience required. Therefore, let’s understand the Difference between NEFT, RTGS, and IMPS to make the right decision when choosing an online payment method.
Table of Contents:
There are several reliable methods for transferring money online in India, each designed to meet different needs. This table shows the key options available, focusing on their features and how they can be used effectively:
Features | IMPS | NEFT | RTGS |
---|---|---|---|
Full Form | Immediate Mobile Payment Service | National Electronic Funds Transfer | Real-Time Gross Settlement |
Minimum Transfer Amount | Rs. 1 | Rs. 1 | Rs. 2 lakh |
Maximum Transfer Amount | Rs. 2 lakh | Depends on customer segment | No upper limit |
Type of Settlement | One-on-one settlement | Batches | One-on-one settlement |
Process Speed | Instantly | Up to 2 hours | Immediately |
Service Availability | 24/7 | 24/7 | During banking hours |
Payment Options | Online | Online/Offline | Online |
Reliability | Yes | Yes | Yes |
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NEFT, or National Electronic Funds Transfer, is one of the most commonly used methods for transferring money between bank accounts in India. It is a secure, reliable, and convenient system introduced by the Reserve Bank of India (RBI).
Let’s dive into the key features of NEFT:
Tip: Check with your bank to confirm the specific transaction limits for your account type.
Transaction Amount | Fee | GST |
---|---|---|
Up to ₹10,000 | ₹2.25 | Applicable GST |
₹10,001 to ₹1 lakh | ₹4.75 | Applicable GST |
₹1 lakh to ₹2 lakh | ₹14.75 | Applicable GST |
Above ₹2 lakh | ₹24.75 | Applicable GST |
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There are several reliable methods for transferring money online in India, each designed to meet different needs. This table shows the key options available, focusing on their features and how they can be used effectively:
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Are you looking for a personal loan?
Real-Time Gross Settlement (RTGS) is a premium fund transfer system in India, designed primarily for high-value transactions. Here's a detailed overview of its key features:
RTGS Transactions Overview: RTGS has a minimum transfer limit of ₹2 lakh, primarily for high-value payments like property purchases and business transactions, while corporate accounts can negotiate arrangements for bulk transactions without a maximum lower limit.
RTGS Overview: RTGS operates 24/7, ensuring immediate processing and near-instant settlement of high-value transactions, unlike NEFT's batch processing.
RTGS Transaction Limits: While the RBI imposes no maximum limit for RTGS transactions, banks may set their caps based on transaction methods like internet or mobile banking.
Tip: It is essential to check your bank’s specific RTGS limits as they can vary significantly across institutions.
Online RTGS Transactions:
Branch-Initiated RTGS Transactions:
Transaction Amount | Fee | GST |
---|---|---|
Up to ₹10,000 | ₹2.25 | Applicable GST |
₹10,001 to ₹1 lakh | ₹4.75 | Applicable GST |
₹1 lakh to ₹2 lakh | ₹14.75 | Applicable GST |
₹2 lakh to ₹5 lakh | Maximum ₹25 per transaction | Excluding GST |
Above ₹5 lakh | Maximum ₹50 per transaction | Excluding GST |
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IMPS, or Immediate Payment Service, is one of the most versatile and widely-used payment systems in India. Introduced by the National Payments Corporation of India (NPCI), IMPS enables real-time, 24/7 fund transfers, making it a convenient option for individuals and businesses alike.
Let’s explore the key aspects of IMPS in detail:
IMPS has no minimum transaction limit, allowing transfers from ₹1, making it ideal for small payments and ensuring accessibility for all users.
IMPS operates 24/7 with instant processing, allowing real-time fund transfers across multiple platforms, including mobile and internet banking, making it ideal for urgent transactions.
Tip: Check your bank’s specific IMPS limit before initiating large-value transactions.
Transaction Amount | Fee | GST |
---|---|---|
Up to ₹1,000 | ₹2.5 | Applicable GST |
₹1,001 to ₹10,000 | ₹5 | Applicable GST |
₹10,001 to ₹1 lakh | ₹5 | Applicable GST |
₹1 lakh to ₹2 lakh | ₹15 | Applicable GST |
Above ₹2 lakh | ₹20 | Applicable GST |
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Understanding your transaction needs is essential when deciding between NEFT, RTGS, and IMPS. Each system caters to different purposes based on fees, speed, and compatibility. Here's a detailed breakdown to help you choose the right one:
Here’s a comparison table of Fees and Charges for NEFT, RTGS, and IMPS:
Transaction Amount | NEFT Fee (₹) | RTGS Fee (₹) | IMPS Fee (₹) |
---|---|---|---|
Up to ₹1,000 | N/A | N/A | ₹2.5 |
₹1,001 to ₹10,000 | ₹2.25 | N/A | ₹2.5 |
₹10,001 to ₹1 lakh | ₹4.75 | ₹4.75 | ₹5 |
₹1 lakh to ₹2 lakh | ₹14.75 | ₹14.75 | ₹15 |
₹2 lakh to ₹5 lakh | ₹24.75 | ₹25 | ₹20 |
Above ₹5 lakh | N/A | ₹50 | ₹20 |
Feature | NEFT | RTGS | IMPS |
---|---|---|---|
Processing Time | Operates in half-hourly batches; same-day processing | Real-time processing; immediate transfer | Instant processing, 24/7 |
Availability | Bank working hours | Bank working hours | 24/7, including holidays |
Suitability | Non-urgent transactions | Urgent, high-value transactions | Time-critical payments of any amount |
Transfer Speed | May take a few hours | Immediate | Instant |
Feature | NEFT | RTGS | IMPS |
---|---|---|---|
Bank Support | Supported by most banks in India | Available across major banks | Supported by over 400 banks |
Transaction Type | Interbank, minimal urgency | Large-value (₹2 lakh and above) | Instant transfers, any amount |
Accessibility | Widely compatible | Restricted to high-value payments | Available via mobile, internet, ATMs, USSD |
Best For | Non-urgent interbank transfers | Immediate high-value payments | Instant, flexible, and accessible transfers |
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Feature | NEFT | RTGS | IMPS |
---|---|---|---|
Minimum Limit | ₹1 (no lower restriction) | ₹2 lakh | ₹1 |
Maximum Limit | No RBI cap; bank-specific (e.g., ₹25 lakh for HDFC/ICICI) | No RBI cap; bank-specific (e.g., ₹50 lakh for HDFC online) | ₹5 lakh per transaction (bank-specific) |
Use Case | Routine payments, bill settlements, small to large business transactions | High-value urgent payments (e.g., real estate, corporate transfers) | Instant small to medium-value transfers (e.g., emergencies, personal needs) |
Tip: Always check with your bank for specific limits on your account or channel (online, branch, mobile).
Charges for fund transfers vary depending on the method and transaction channel:
Feature | NEFT | RTGS | IMPS |
---|---|---|---|
Online Charges | Free for savings accounts | Free for savings accounts | Often free via NetBanking/mobile banking |
Branch Charges | Up to ₹10,000: ₹2.25 + GST | ₹2–5 lakh: ₹25 + GST | Up to ₹1,000: ₹2.5 + GST |
₹10,001–1 lakh: ₹4.75 + GST | Above ₹5 lakh: ₹50 + GST | ₹1,001–₹10,000: ₹5 + GST | |
₹1–2 lakh: ₹14.75 + GST | - | ₹1–2 lakh: ₹15 + GST | |
Above ₹2 lakh: ₹24.75 + GST | - | Above ₹2 lakh: ₹20 + GST | |
Best For | Routine, non-urgent payments | High-value urgent payments | Instant payments of any amount |
The time taken for funds to reach the recipient depends on the selected payment system:
Feature | NEFT | RTGS | IMPS |
---|---|---|---|
Processing Time | Batch-wise; settlement within 2-3 hours | Real-time, immediate credit | Instant |
Availability | 24/7, including operational hours | 24/7, including weekends and holidays | 24/7, including bank holidays |
Best For | Routine payments | Urgent, high-value transfers | Quick payments for emergencies or personal needs |
Aspect | NEFT | RTGS | IMPS |
---|---|---|---|
GST Applicability (Branch) | 18% of transaction fee | 18% of transaction fee | 18% of transaction fee |
Example Calculation | Fee: ₹4.75 → GST: ₹0.85 → Total: ₹5.6 | Fee: ₹25 → GST: ₹4.5 → Total: ₹29.5 | Fee: ₹5 → GST: ₹0.9 → Total: ₹5.9 |
Online Transactions | No GST (often free) | No GST (often free) | No GST (often free) |
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Before making a fund transfer, understanding the system, associated fees, limits, and compatibility ensures a seamless and cost-effective experience. Here’s an in-depth guide to the critical factors:
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NEFT processes transactions in batches, RTGS is real-time for high-value amounts, and IMPS offers instant transfers 24/7.
NEFT settles in hourly batches, RTGS clears individually in real time, and IMPS provides immediate fund transfer.
No, IMPS is instant, RTGS is real-time but within banking hours, and NEFT is batch-processed during its operational timings.
NEFT has no minimum or maximum limit, RTGS requires a minimum ₹2 lakhs, and IMPS generally allows up to ₹5 lakhs, varying by bank.
IMPS is best for instant transfers, RTGS for high-value transactions, and NEFT for regular transfers without urgency.
Yes, IMPS provides instant fund transfers, while NEFT and RTGS depend on banking hours.
IMPS works 24/7, including holidays, while NEFT and RTGS are now available 24x7, including holidays, in most banks.
IMPS is slightly costlier; NEFT and RTGS charges vary but are usually low or free for online transactions.
All methods are highly secure as they are regulated by the RBI and use encryption technologies.
They provide seamless, efficient, and secure options for transferring funds domestically with varying speeds and limits.
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