Difference between IMPS, RTGS and NEFT | HDFC Bank (2025) (original) (raw)
16 January, 2024
Electronic money transfer systems, such as IMPS, RTGS, and NEFT, are utilised to make payments. Through Immediate Payment Service (IMPS), you can transfer funds instantly between bank accounts via mobile phones or online banking. RTGS,or Real Time Gross Settlement, is a large-value transaction settlement system in which payments are paid individually and in real time. NEFT,or National Electronic payments Transfer, is a mechanism for electronically transferring payments between bank accounts that operates in batches and settles transactions daily. These mechanisms enhance the convenience and speed of electronic payments. In this article, we breakdown the differences between IMPS, NEFT and RTGS.
Difference between IMPS and NEFT
Both NEFT and IMPS are electronic funds transfer mechanisms offered by Indian banks. However, there are some distinct differences between the two.
Regulatory body
IMPS is backed by the National Payment Corporation of India (NPCI). While NEFT is owned and operated by the Reserve Bank of India (RBI).
Speed of settlement
NEFT operates in batches and settles transactions in half-hourly intervals. The beneficiary receives the payment in their account within a few hours. IMPS allows for real-time or instant transfer of funds, allowing recipients to get the funds in their account immediately.
Transfer limits
There are no maximum or minimum transfer limits with NEFT. However, the maximum transfer limit for IMPS is ₹5 lakh per transaction.
- Timing
You can transfer funds via NEFT online round the clock. For transfers at the bank branch, the timings are limited to those of the bank’s working hours. IMPS also offers 24x7, 365 days availability for fund transfer.
- Transfer methods
NEFT can be done via online banking, mobile banking or by visiting a bank branch. IMPS is only available as an online transfer mode. It also allows you to send funds using a Mobile Money Identifier (MMID) and a mobile phone.
- Fees
Online NEFTs typically do not attract transaction charges. NEFTs at a bank branch usually come with transaction charges. The bank levies fees for IMPS transactions.
Difference between NEFT and RTGS
The following are the fundamental distinctions between NEFT and RTGS:
Regulatory body
Both NEFT and RTGS modes of transfer are owned and operated by RBI.
Transaction Schedule
NEFT operates in half-hourly batches, with settlement taking place at regular intervals throughout the day. Transactions initiated during batch timings will be completed in the next batch that becomes available. RTGS, on the other hand, operates in real-time, which implies that transactions are processed and cleared as soon as they are initiated.
Transaction limits
There are no transaction restrictions for NEFT. It can be used to transfer both small and large amounts of money. On the other hand, RTGS is mainly utilised for high-value transactions. The minimum amount for an RTGS transaction is ₹2 lakh, with no upper limit.
Charges
Typically, the bank does not levy charges on online NEFT and RTGS transfers. However, you may have to pay a transaction fee while initiating transfers at the bank branch.
Transaction timings
Online NEFT and RTGS transfers are available round the clock. For transfers at the bank branch, the branch’s working hours will apply.
Difference between IMPS, NEFT and RTGS
Here is an analysis of IMPS, NEFT and RTGS differences.
| | IMPS | NEFT | RTGS | | | -------------------------- | -------------------------------------- | ------------------------------------------------------------------------------ | ------------------------------------------------------------------------------ | | Managed by | National Payments Corporation of India | Reserve Bank of India | Reserve Bank of India | | Speed of transfer | Real-Time | Batch Settlement | Real-Time | | Maximum transfer limit | ₹5 lakh | No limit | No limit | | Minimum transfer limit | No limit | No limit | ₹2 lakh | | Availability | 24/7, 365 | 24/7, 365 | 24/7, 365 | | Charges | Charges levied by the bank | No charges for online transfers,Charges applicable for transfer at bank branch | No charges for online transfers,Charges applicable for transfer at bank branch |
Which is better, NEFT, RTGS or IMPS?
Note that all three fund transfer modes can work for based on your fund transfer requirements.
- If you want your beneficiary to receive funds of up to ₹5 lakh in their account instantly, you may want to consider IMPS.
- If you do not want to pay transfer charges and your amount is less than ₹2 lakh, you can opt for NEFT.
- If you want to send an amount greater than ₹2 lakh, you can select RTGS as your fund transfer option.
Enjoy seamless fund transfer with HDFC Bank
At HDFC Bank, we offer several fund transfer options which you can access with our online banking channels like NetBanking and Mobile Banking. You can send money via NEFT, RTGS as well as IMPS. All you have to do is add your beneficiary and start making transfers instantly.
*Terms and conditions apply. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances.
FAQs
Difference between IMPS, RTGS and NEFT | HDFC Bank? ›
IMPS and NEFT are available 24x7, while RTGS operates only during banking hours. Fund Transfer Limit: The amount of money that can be transferred is the fund transfer limit. The limit will be different for different payment methods.
Which is better, RTGS or NEFT or IMPS? ›
For low-value transactions under ₹2 lakhs, NEFT is suitable as it is cost-effective and has no minimum transaction limit. RTGS is ideal for high-value transactions above ₹2 lakhs that must be settled immediately. IMPS is the fastest option, allowing instant fund transfer 24/7.
Which is cheaper, RTGS or NEFT? ›
This means that funds transferred through NEFT may take a little longer to reflect in the beneficiary's account than those transferred through RTGS. However, NEFT is much more affordable than RTGS. Answer. NEFT is a good option for transferring smaller sums of money, while RTGS is better suited for larger transfers.
Why do people do NEFT instead of IMPS? ›
The main difference between IMPS and NEFT is that IMPS allows money transfers from one bank account to another in real time, while NEFT allows the direct transfer of funds via electronic devices from one bank branch to another.
Customers don't need to share bank details like bank account numbers to make transactions through IMPS. It's a 24×7 service throughout the year. Once the transaction is complete the sender and receiver both get notified saying debited and credited. No charges are avail for using this service.
What are the disadvantages of NEFT transfer? ›
What are the Disadvantages of NEFT?
- Funds are not transferred instantly to the recipient.
- Some banks may charge additional fees.
- NEFT can only be used for domestic transfers.
- NEFT transactions can be complex and may not be accessible to everyone.
What is the RTGS limit per day? ›
– RTGS transfer limits
There's a minimum limit of Rs. 2 lakhs for RTGS transactions, and there's no maximum limit as such. To get an RTGS-enabled account, you can either contact your bank or check your eligibility status in your online banking portal.
Can I transfer 20 lakhs through RTGS? ›
The maximum amount that can be transferred under this system can vary across banks. There is no upper limit set by the RBI for RTGS transactions. For example, the maximum transfer amount is Rs. 20 lakhs per day at IDFC First Bank and a maximum of Rs.
Can we transfer 5 lakhs through NEFT? ›
NEFT (National Electronic Funds Transfer) is a popular method for transferring funds between bank accounts, and one of its key advantages is that there is no set limit on the amount that can be transferred. The Reserve Bank of India (RBI) does not impose any minimum or maximum amount for NEFT transactions.
What are the disadvantages of RTGS? ›
Cost: RTGS is generally more expensive than other payment systems. Banks charge a fee for every RTGS transaction, and these fees can add up quickly, particularly for large transfers. 2. Inconvenience: RTGS can be inconvenient for some customers, particularly those who do not have access to online banking.
Why RTGS is preferred over NEFT? ›
RTGS does not follow any specific processing method unlike NEFT; hence, the funds are settled in real-time, without any delay. Through RTGS, each transaction gets processed with every instruction, which makes the money transfer process easier and faster.
What is the limit of IMPS per day? ›
IMPS Transaction Limit Per Day
The Reserve Bank of India (RBI) in October 2021 updated the guidelines for IMPS transactions and increased the daily transfer limit from ₹2 lakhs to ₹5 lakhs for individuals. This per transaction limit for Immediate Payment Service (IMPS) is applicable for all channels except SMS and IVR.
Can I transfer 50000 through IMPS? ›
Rs 50,000 in first 24 hours (Post that, the Third Party Transfer limits will apply) IMPS using MMID, Rs 5000 per day per Cust ID (on either of the channel Net Banking or Mobile Banking)
Charges applicable on NEFT transactions
| Transaction amount | Fee amount |
|---|---|
| Up to Rs. 10,000 | Rs. 2.5 |
| Rs. 10,000 to Rs. 1 Lakh | Rs. 5 |
| Rs. 1 Lakh to Rs. 2 Lakh | Rs. 15 |
| Equal to or more than Rs. 2 Lakh | Rs. 25 |
Feb 13, 2024
What is the new rule of IMPS? ›
The National Payments Corporation of India (NPCI) has introduced a new rule that allows customers to transfer up to Rs 5 lakh without the need to add beneficiary details such as account numbers or IFSC codes.
Which amount is better for 2 lakh NEFT or RTGS? ›
Minimum/Maximum amount for RTGS/NEFT transactions under Retail Internet Banking
| Type | Minimum | Maximum |
|---|---|---|
| RTGS | Rs. 2 Lakhs | No Limit |
| NEFT | No Limit | No Limit |
Under normal circumstances, the beneficiary branches are expected to receive the funds in real time as soon as funds are transferred by the remitting bank. The beneficiary bank must credit the beneficiary's account within 30 minutes of receiving the funds transfer message.
Fees and Charges for RTGS Transactions
In the case of online transfers, no charges are levied for RTGS transactions. In case the RTGS transaction is completed at a bank branch, a charge of Rs. 15 Plus GST is levied.
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