NEFT vs RTGS vs IMPS: Key differences, Advantages & Benefits (2024)

FAQs

NEFT vs RTGS vs IMPS: Key differences, Advantages & Benefits? ›

FAQs about NEFT, RTGS & IMPS

IMPS (Immediate Payment Service) allows instant transfer of funds 24/7, while NEFT (National Electronic Funds Transfer) typically takes a few hours to settle transactions within India. On the other hand, RTGS (Real-Time Gross Settlement) is used for high-value transactions with immediate settlement.

NEFT vs RTGS – A comparison

Settlement Speed: NEFT operates on a deferred settlement mode, where transactions are processed and settled in batches. The settlements take place in hourly intervals. Conversely, RTGS settles transactions in real time, meaning the funds are instantly transferred into beneficiary accounts.

If you wish to transfer a huge amount of money on an immediate basis, then you should opt for RTGS as the mode of funds transfer. On the other hand, if you wish to transfer an amount lesser than Rs. 2 lakh, without any urgency, then you can opt for NEFT as the mode of fund transfer.

IMPS and NEFT are among the most popular fund transfer options. 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.

However, for any payments which are of lower amounts, NEFT is a more efficient mode of payment. Is RTGS mode of payment safe? RTGS is a highly safe and secure mode of payment which is monitored by the government. It is even more secure as it is used majorly for money transfers of higher amounts.

1) Payment Gateway transaction limit is up to 10 lakh per day / per transaction. 2) Own account fund transfer — No limit (up to the available balance in debit account). 3) IMPS to registered beneficiary - up to Rs 5 Lakh per day/per transaction. 4) NEFT to registered beneficiary per day - up to Rs.

– 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 we do RTGS without Cheque? A. Yes, a cheque is mandatory if RTGS transaction from the branch. However, using electronic media like internet banking or mobile app does not require any cheque.

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.

Can I transfer 20 lakhs through NEFT? ›

There is no limit or maximum amount for NEFT Transactions. However, each bank may have certain specified limits for their NEFT services. For example, HDFC Bank has an NEFT Transfer Limit of Rs. 25 Lakhs per day per customer ID if the transaction is done through online mode.

Transaction Timing: NEFT transactions are not processed in real-time. They are done in batches, which means there can be a delay in funds reaching the recipient, especially if initiated after the cut-off time for a particular batch.

If you need to transfer a large sum of money urgently, RTGS would be the best option. If you want to transfer money quickly and don't need an immediate transfer, NEFT can be a good choice. If you want to transfer money instantly, including during holidays, IMPS is the way to go.

The choice of the payment method depends on the urgency and the amount you need to transfer. If you have to make a huge payment, you should choose RTGS. In case there is no urgent need to transfer the money and the sum is not large, you may choose NEFT.

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.

So if you want to transfer large sums of money real time RTGS is better but for small amounts where there is not much urgency NEFT is a Better Option. Usually RTGS costs more than NEFT Transactions.

As per NPCI, from October 2021 the IMPS limit is Rs. 5 Lakh per day with any number of transactions. 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.

What is NEFT? The NEFT or National Electronic Funds Transfer is an electronic payment system that allows users to initiate direct one-to-one payment anywhere across the country. One can send money to the beneficiary only if he or she has a bank account with any branch in the country.