Today, electronic fund transfers have no alternative, and RBI and NPCI have introduced a handful of fund transfer methods, such as NEFT, RTGS, and IMPS, so that users can transact with complete ease. Not only that, but on-time modifications to these methods show their flexibility that resulted in a higher acceptance among the users. For example, RBI made NEFT and RTGS available 24x7 and minimized the transaction charges to encourage more transactions. Now the question is how NEFT, RTGS, and IMPS differ from each other, and which is most useful for you?

To answer this question, let's have a detailed comparison of NEFT, RTGS, and IMPS, and find out their differences, so that you can choose the most useful one for you.

What is NEFT?

NEFT, or National Electronic Funds Transfer, is one of the most popular fund transfer methods in India. Here, the transfer initiated from the remitter's account gets settled in batches and reflects on the beneficiary account after a few hours on the same day or the next day. It is a handy method for bulk transfers.

What is RTGS?

RTGS, or Real-Time Gross Settlement, has a real-time clearance feature with no upper limit. The amount is credited to the beneficiary account immediately after the transfer. It is most useful for high-value transfers.

What is IMPS?

IMPS, or Immediate Payment Service, also has an instant transfer feature, but for small-value transactions up to 5 lacs.

Differences between NEFT, RTGS and IMPS

Factors	NEFT	RTGS	IMPS
Regulatory body	RBI	RBI	NPCI
Availability	Pan India	Pan India	Pan India
Timings	Online – 24x7 Offline – Banking hours	Online – 24x7 Offline – Banking hours	Online & ATM – 24x7
Weekend & holiday availability	Online – Yes Offline – No (on weekly off days and bank holidays)	Online – Yes Offline – No (on weekly off days and bank holidays)	Online & ATM – Yes
Modes available	Online (mobile banking, net-banking) and offline	Online (mobile banking, net-banking) and offline	Online (mobile banking, net-banking, USSD, ATM)
Minimum value	INR 1	INR 2,00,000	INR 1
Maximum value*	As per bank guidelines	No upper limit	INR 5,00,000 in one day from one account
Number of transfers allowed in one day	No limit	No limit	No limit, but the total value of the transfers in one day from one account must not exceed 5 lacs
Inter and intra-bank transfers	Allowed	Allowed	Allowed
Prerequisites	Beneficiary’s name, a/c no, branch, IFSC, a/c type	Beneficiary’s name, a/c no, branch, IFSC, a/c type	Either beneficiary’s mobile number and MMID Or beneficiary’s account number and IFSC.
Settlement	Batch settlement	Gross settlement	Gross settlement
Time taken to settle the amount	30 minutes to 72 hours	Around 30 minutes	Immediately
Charges*	Inward – Free Outward (online) – Free Outward (offline) – INR 2.50-25 + taxes	Inward – Free Outward – INR 25-50 + taxes	Inward – Free Outward – INR 2.50-20 + taxes

* Maximum value and charges may vary from bank to bank – so check the bank guidelines for an exact idea.

Which One Should You Use: NEFT, RTGS or IMPS

It depends on your requirements:

• IMPS is the best for instant transfers of small values up to 5 lacs
• Go for RTGS for fast transfers of greater values
• NEFT will be your catch if you want to avoid transaction charges

So, you must pick a fund transfer method based on how fast you want the transfer, the amount you want to transfer, and the transaction charge you want to pay.

End words

Even though there are some differences between NEFT, RTGS, and IMPS, the common factor is security. All three are conducted on trusted bank servers, which instantly reduces security threats. So, regarding security, users can rely on all three without hesitation.

No matter how much the differences are, NEFT, RTGS, and IMPS are all integral parts of digital payments in India. By introducing the ease of online payments, these methods have shown that there is no need to visit the bank, no matter how much amount a user wants to transfer. Just a few clicks and the fund is ready to reach the beneficiary account. So, irrespective of the difference, NEFT, RTGS, and IMPS play their parts in seamless transfers in India.

If you are using cash payments till now for bulk transfers, it is high time to embrace cashless payments with NEFT, RTGS, or IMPS. Integrating a payment gateway can now add an extra layer of security and prevent your money from fraud. So, keep your hard-earned money safe during the transfers with the bank’s security and payment gateway’s guarantee.