Fund transactions are the most common banking activity most people do regularly. The transaction is done for many purposes, such as repayments, investments, or helping a loved one. Initially, a fund transfer could take a couple of working days. However, with the introduction of Online Banking, fund transfers are done instantly. While several new electronic transfer modes have been introduced, NEFT, RTGS, and IMPS remain the most used methods.
They are 100% secure and allow fund transfers within the shortest time frame. Since these methods work on similar lines, many often get confused and consider them a substitute for the other. Let us understand the fundamentals of these transfer methods and draw a clear difference between NEFT and RTGS, and IMPS.
About NEFT
NEFT stands for National Electronic Fund Transfer. The Reserve Bank of India handles this facility. You can avail them to send funds to any account holder. However, note this facility can only be used by banks participating in the payment system.
About RTGS
RTGS, or Real Time Gross Settlement, is a transfer facility that settles your fund transfers in real-time. This is the crucial RTGS and NEFT difference. It is regulated by the RBI as well. RTGS is considered when the fund transfer requirement is significant and urgent.
About IMPS
The National Payments Corporation of India introduced IMPS or Immediate Mobile Payment Services. Like RTGS, IMPS settles your fund transfer request in real time. You only need to enter the beneficiary’s account details, hold the required funds, and you are good to go.
Difference between the transfer methods
Though all three methods allow you to send funds to the beneficiary, the following pointers set them apart. Here is a detailed overview of NEFT vs RTGS vs IMPS:
Fund transfer limit
- The minimum transfer limit for NEFT and IMPS is Rs. 1 lakh, while for RTGS, it is Rs. 2 lakh.
- There is no maximum transfer limit for NEFT and RTGS. However, the maximum transfer limit is Rs. 2 lakh for IMPS.
Fund settlement speed
- Fund transfers initiated through RTGS and IMPS are settled in real-time.
- Fund transfers initiated through NEFT are settled in half-hourly batches.
Payment options
- NEFT and RTGS fund transfers can be initiated both online and offline.
- An IMPS fund transfer can be initiated online only. Use the Banking app to make a fund transfer within seconds.
Service availability
- All three transfer methods are operational 365 days 24*7.
- However, if you plan to make an NEFT transfer, consider making it before to avoid last-minute hassles, as all NEFT transfers are settled in batches.
- Remember to provide your bank with accurate details of the beneficiary. Otherwise, a delay is inevitable.
