Difference Between IMPS, RTGS and NEFT

Know the Difference Between IMPS, RTGS and NEFT

If you’ve ever transferred funds online, chances are that you’re aware of terms like IMPS, RTGS and NEFT. These terms stand for Immediate Payment Service (IMPS), National Electronic Funds Transfer (NEFT) and Real-Time Gross Settlement (RTGS), respectively. They’re basically different payment methods to transfer funds online. In this article, we’ll help you understand what separates these methods from each other.


Launched on 22nd November 2010, IMPS is a real-time fund transfer instrument provided by NPCI, through its existing NFS switch. The service instant, 24×7 interbank electronic fund transfer across India. The main objectives of IMPS include:

  • Make payment simpler and easy, using just the mobile number of the beneficiary.
  • To enable bank customers to use mobile instruments as a channel for accessing their bank’s accounts and remit funds.
  • To build the foundation for a full range of mobile-based banking services.

As of today, a whopping 590 members live with this service, including leading banks like SBI and ICICI, and PPIs.


As its name suggests, RTGS is useful when the amount involved is higher. Typically, it should be used when the volume is over ₹2 lakh. RTGS transactions, however, do not happen instantly, taking from around 30 minutes to a few hours. That is not too bad, though, especially as the volume of transactions is high. The upper limit on these transactions varies from one bank to another, with charges dependent on banks.


This payment system is comparatively slower than the other two, with funds settled on a 23-hour basis. The benefit, though, is that NEFT allows you to transfer funds from any of your accounts to anyone else’s account in any place. The only condition is that both these accounts must be NEFT-enabled. You can use this facility 24×7, including on bank holidays.

Difference between IMPS, RTGS and NEFT

Settlement TypeReal-timeReal-timeHalf hourly batches
Minimum Transfer Limit₹1₹2 lakh₹1
Maximum Transfer Limit₹2 lakhNo limitNo limit. For cash-based remittances, however,  the limit is ₹50,000 within India and Nepal under the Indo-Nepal Remittance Facility Scheme.
Service TimingsAvailable 365 days, 7 days a weekAvailable 365 days, 7 days a weekAvailable 365 days, 7 days a week
Transaction ChargesCharges for remittance through IMPS are decided by the individual member banks and PPIs. Taxes are also included.No charges for inward transactions and for online transactions.
Charges applicable for outward transactions for amount:
₹2 lakh – ₹5 lakh, not exceeding ₹25
Above ₹5 lakh: not exceeding ₹50
GST is also applicable
No charges for inward transactions (at destination bank branches for credit to beneficiary accounts)
Payment OptionsOnlineOnline and offlineOnline and offline


Q: Do IMPS transfer have any additional charges?

Ans: There’s no additional charges for an IMPS transfer.

Q: Is RTGS mode of payment safe?

Ans: RTGS is a reliable and extremely secure payment method, which is monitored by the government. It is even more secure as it is used majorly for money transfers of higher volumes.

Q. How many NEFT transactions can be done on a single day?

Ans: NEFT transactions may be done from 8 am to 6:30 pm in the evening at any time of the day. The number of NEFT transactions in one day is not limited.

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