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20 Nov 2017

NEFT, RTGS, IMPS: Here's how to choose the best option

Do you use netbanking regularly, but have no idea what NEFT, RTGS or IMPS are? Considering how complicated they look, it won't be a surprise.

One thing you probably know is that these are all methods of funds transfer. The difference lies in how they work.

Here's a quick guide so the next time, you can choose the one best-suited for you.

In context

All about NEFT, RTGS, IMPS
Use this for general non-urgent transfers


Use this for general non-urgent transfers

The National Electronic Fund Transfer facilitates one-to-one fund transfer. It can be used by both individuals/firms. There's no minimum or maximum limit.

Transactions are charged Rs. 2.50-25. They're done in several batches throughout the day; once you've confirmed a NEFT, it'll be scheduled for the next batch.

You can deposit cash at banks for NEFT transfer (max Rs. 50,000) even without having an account.


For large real-time transfers, use this

The Real Time Gross Settlement, as is obvious, allows funds transfer in real-time (max 30 minutes), unlike NEFT. Charges are higher.

Though there's no upper limit, the transaction has to be over Rs. 2L.

Unlike the NEFT which individual banks conduct, RTGS takes place in the RBI's books.

For both NEFT and RTGS, the beneficiary has to be registered before transactions can be done.

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Use this for instant transfers anytime, 24x7


Use this for instant transfers anytime, 24x7

The Immediate Payment Services is offered by the National Payments Corporation of India and works 24x7.

The advantages, apart from its round-the-clock accessibility (including holidays), are several: transfers are instant, safe and can be done through mobile, online or ATM.

Charges and limits are set by individual banks.

Here too, both the sender and the beneficiary have to be registered for IMPS.

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