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- Key Highlights
- What are IMPS, NEFT and RTGS?
- What Is the Difference between IMPS, NEFT and RTGS?
- Difference between IMPS and NEFT
- Difference between NEFT and RTGS
- Difference between RTGS and IMPS
- Difference between IMPS, NEFT and RTGS
- Which Mode of Transfer Is Suitable for You?
- Transfer Money at Your Conveniencewith Your Preferred Mode
- FAQS - FREQUENTLY ASKED QUESTIONS
Key Highlights
- Understanding the difference between IMPS, NEFT, and RTGS helps identify the unique features of each money transfer mode.
- IMPS is a real-time payment service facilitating instant money transfers.
- NEFT is an electronic fund transfer system that processes transactions in batches.
- RTGS is an electronic system processing transactions throughout the day.
- Knowing the difference between IMPS, NEFT, and RTGS helps you choose the best-suited money transfer mode based on your preference or circumstances.
IMPS, NEFT, and RTGS are the popular modes of money transfer in India. They facilitate a seamless and rapid movement of funds from one bank account to another. However, there are a few distinct features that differentiate one from the other.In this blog, we have highlighted the difference between IMPS, NEFT and RTGS to help you make an informed choice and pick the mode of transfer that best suits your needs.
What are IMPS, NEFT and RTGS?
Before addressing the difference between IMPS, NEFT, and RTGS, let’s first brush up on what they mean.
- IMPS (Immediate Payment Service): A real-time payment service facilitating instant money transfers.
- NEFT (National Electronic Funds Transfer): An electronic fund transfer system processing transactions received up to a particular time in batches.
- RTGS (Real Time Gross Settlement): An electronic system processing money transfers on a transaction-by-transaction basis throughout the day.
What Is the Difference between IMPS, NEFT and RTGS?
Let’s start by distinguishing two transfer modes at a time to make the difference between IMPS, NEFT and RTGS clearer.
Difference between IMPS and NEFT
Here are the key differences between these modes of transfer:
- Regulated By: While IMPS is backed by the National Payment Corporation of India (NPCI), NEFT is owned and operated by the Reserve Bank of India (RBI).
- Mode of Transfer: IMPS is accessible on multiple channels like mobile, internet, branch, ATM, and SMS. You can initiate NEFT through internet or mobile banking, or by visiting a branch.
- Transfer Amount: The per transaction limit for IMPS is ₹5 lakh (except SMS and IVR). For NEFT, there is typically no limit on the transfer amount. Please note that it is advisable to check the capping with your bank in both cases.
- Settlement Time: IMPS facilitates instant transfers. In the case of NEFT you can expect the beneficiary to receive the funds within two hours of batch settlement.
- Applicable Charges: Charges for IMPS are decided by the member banks and PPIs i.e. Prepaid Payment Instrument Issuers. For NEFT, RBI has capped the transaction charges. You may contact your bank to find out about the charges.
Difference between NEFT and RTGS
You can initiate transfers either online (internet/mobile banking) or offline (through a branch visit). Also, being the regulatory body, RBI has capped the transaction charges in both cases.While the above are some of the similarities between NEFT and RTGS, some of the key differences between them are as follows:
- Transfer Amount: Normally, there is no limit on the transfer amount for NEFT. However, some banks may have a capping on the transaction limit. On the other hand, there is no upper limit for RTGS, but the minimum amount to be transferred should be ₹2,00,000.
- Settlement Time: The beneficiary usually receives funds within two hours of batch settlement. Whereas there is a real-time RTGS transfer to the beneficiary account.
Also Read: Real-Time Gross Settlement (RTGS) - Meaning, Full Form, Charges and Process
Difference between RTGS and IMPS
While both RTGS and IMPS facilitate real-time money transfers, here are the differences between the two:
- Regulated By: RBI and NPCI regulate RTGS and IMPS, respectively.
- Mode of Transfer: You can initiate RTGS through internet or mobile banking, or by visiting a branch. On the other hand, IMPS is accessible on various channels like mobile, internet, branch, ATM, and SMS.
- Transfer Amount: While there is no upper limit for RTGS, the minimum amount to be transferred should be ₹2,00,000. In the case of IMPS, the per transaction limit is ₹5 lakh (except SMS and IVR). You may get in touch with your bank for more details.
- Applicable Charges: RBI has capped the transaction charges for RTGS. Charges for IMPS are decided by the member banks and PPIs. You may talk to your bank for more information.
Difference between IMPS, NEFT and RTGS
Now that we have a broad understanding of these transfer modes, let’s dive deep into the difference between IMPS, NEFT and RTGS. Here is a tabular presentation:
| Difference Between IMPS, NEFT And RTGS | |||
| Particulars | IMPS | NEFT | RTGS |
| Regulated By | Regulated by the NPCI. | Regulated by the RBI. | Regulated by the RBI. |
| Mode of Transfer | Multiple channels like mobile, internet, branch, ATM, and SMS. | Online through internet or mobile banking, and offline through a branch visit. | Online through internet or mobile banking, and offline through a branch visit. |
| Transfer Amount | Per transaction limit of ₹5 lakh (except SMS and IVR). You may check with your bank for more information. | Normally there is no limit on the transfer amount, but some banks may have a capping. | There is no upper limit, but the minimum amount to be transferred should be ₹2,00,000. |
| Settlement Time | Real-time | Near real-time/batch settlement | Real-time |
| Applicable Charges | Decided by member banks and PPIs | Capped by RBI | Capped by RBI |
Note : 24x7x365 online availability is a common thread that binds all three transfer modes. Thus, you can initiate money transfers at your convenience from anywhere, at any time.
Which Mode of Transfer Is Suitable for You?
The difference between IMPS, NEFT and RTGS highlights the unique features of each transfer type. You can opt for the one that meets your needs in terms of transaction value and settlement time. Also, do account for the associated charges to make an informed choice.Here are a few examples:
- In case of urgent transactions, IMPS and RTGS make sense as they facilitate transfers on a real-time basis.
- If the transfer amount is less than ₹5 lakh, you can explore IMPS. You can also consider NEFT for low-value transactions.
- RTGS is the preferred choice for high-value transactions.
Transfer Money at Your Conveniencewith Your Preferred Mode
After going through this blog, you may now have a better understanding of the difference between IMPS, NEFT and RTGS. While each of these modes facilitates a seamless and secure money transfer, they are slightly different from each other. This difference is largely due to the transaction value, settlement time and related charges.Thus, choose the mode that gives you more comfort and meets your transactional needs. This is similar to handpicking mutual funds for your investment portfolio. From a host of mutual funds available in the market, choose the ones that align with your financial aspirations, investment horizon, risk appetite, etc. Also Read: 5 Ways to Transfer Money from One Bank to Another
FAQS - FREQUENTLY ASKED QUESTIONS
What is meant by IMPS?
IMPS or Immediate Payment Service facilitates instant money transfers. It is a real-time payment service.
Can you briefly explain NEFT?
It is an electronic fund transfer system that processes money transfers in batches.
What does RTGS mean?
It is also an electronic system enabling fund transfers. It processes money transfers on a transaction-by-transaction basis throughout the day.
All the above facilitate fund transfers, so what is the difference between IMPS NEFT and RTGS?
The difference between IMPS, NEFT, and RTGS is largely in terms of transaction value, settlement time, and related charges.
Can you elaborate on the difference between IMPS NEFT and RTGS in terms of transaction value?
Usually, the per transaction limit for IMPS is ₹5 lakh (except SMS and IVR). You may talk to your bank for more details. In the case of NEFT, there is typically no limit, however, some banks may have a capping. Lastly, the minimum transfer amount should be ₹2,00,000 for RTGS.
What is the difference between IMPS NEFT and RTGS when it comes to the settlement time?
Both IMPS and RTGS enable money transfers on a real-time basis, and NEFT facilitates a near-real-time or batch settlement.
Could you also bring to light the difference between IMPS, NEFT, and RTGS wrt charges?
IMPS charges are decided by the member banks and PPIs. On the other hand, NEFT and RTGS charges are capped by RBI.
Who is the governing body in the case of these transfer modes?
While NPCI governs IMPS, RBI governs NEFT and RTGS.
How can I initiate fund transfers through these modes?
You can initiate IMPS transfers through multiple channels like mobile, internet, branch, ATM, and SMS. You can initiate NEFT and RTGS online through internet or mobile banking and offline through a branch visit.
When are these modes of transfer available?
You can initiate money transfers online through any of the three modes 24x7x365.
The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.
