What Are IMPS, NEFT And RTGS - Ultimate Guide
- Er. Varun Kumar
- April 7, 2025
- 04 Mins read
- Payment Gateway
Nowadays in India, cash is hardly used. After demonetization, the public is avoiding online transactions in many cases after having options like UPI & Digital Wallets. The three most commonly used payment systems in India are :-
IMPS (Immediate Payment Service)
NEFT (National Electronic Funds Transfer)
RTGS (Real-Time Gross Settlement)
You will understand the thin line difference between NEFT, RTGS, and IMPS. Today’s maximum transactions are getting digital. These three have different levels of transaction limits, settlement timing, and charges. We will break down the differences to get the right choice for transferring your fund.
Table of Contents
The basic difference between IMPS, NEFT, and RTGS!
When electronics fund transfers are involved in India. The transaction’s timing, limits and charges are the points to consider.
IMPS (Immediate Payment Service)
IMPS offers an instant payment service with a maximum limit of 5 lakh in a single transaction in India. Money can be transferred round the clock. This is ideal for urgent needs. Users can transfer money 24/7.
IMPS (Immediate Payment Service)
It is done in a batch process and enables fund transfer between banks across India. This method is cost-effective. There is no minimum limit and it is suitable for general fund transfer.
RTGS (Real-Time Gross Settlement)
It is for high-value transactions starting from ₹2 lakh. It provides instant settlement for high purchases or sometimes critical business payments.
| SL. NO. | BASIS | NEFT | RTGS | IMPS |
|---|---|---|---|---|
| 1 | Lower Limit Transaction | Rs. 1 | Rs. 1 lac | Rs. 1 |
| 2 | Upper Limit Transaction | No upper limit (bank-specific) | No upper limit | Rs. 5 lac (bank-specific) |
| 3 | Settlement Type & Speed | Can do Batch Settlement (half-hourly) | Can do Batch Settlement | Instant One - on - One Settlement |
| 4 | Service Availability | 24/7 | Varies Bank to Bank Hour | 24/7 |
| 5 | Mode Of Process | Online & Offline | Online & Offline | Only Online |
| 6 | Transaction Speed | Between 30 min. to 72 Hrs. | Within 30 min | Instant |
| 7 | Transaction Charges | Inward - No Charge Outward - nill to Rs.25 | Inward - No Charge Outward - up to Rs. 25 + GST (Rs. 2-5 lakhs) , up to Rs. 50 + GST (above Rs. 5 lakhs) | Varies bank to bank with the volume of transaction. |
| 8 | Reliability | 100% | 100% | 100% |
| 9 | Security | Highly secure | Highly secure | Highly secure |
Important Consideration While Initiating Fund Transfer
GST Implications
Consider 18% GST on every transaction fee. All are included for NEFT, RTGS, and IMPS. This totally impacts overall cost.
Network Compatibility
Both the bank (sender and receiver) support payment networks (NEFT, RTGS, or IMPS) for uninterrupted fund transfer.
Frequently Asked Questions (FAQs)
What are the methods of online money transfer?
The different ways of doing transactions through banks in India are:
- NEFT is secure for bank-to-bank transfers.
- RTGS is for high-volume real-time transactions.
- IMPS and UPI offer instant transactions.
Which is better NEFT, RTGS or IMPS?
All are secure and reliable. It depends upon the priority and transactions’ volume.
- NEFT is for huge transactions. One can schedule payments as it is cost-effective and widely used.
- RTGS is for high-value transfers over ₹2 lakhs. Due to its immediate settlement.
- IMPS is for small transactions (₹1 to ₹5 lakhs). It is known to be the fastest method for instant transfers.
Which is faster, IMPS or NEFT?
IMPS is faster. It provides instant transfers round the clock, even on holidays. NEFT transfers process in batches. So sometimes it takes a few hours.
How long does an RTGS transfer take?
RTGS transfers are settled in real time. The funds get credited within 30 minutes.
Is RTGS available 24 hours?
Since December 14, 2020. RTGS services are available 24/7. Work during weekends and holidays. All until further notice.
Resources:
Following are the links that are used to extract the above information.
https://www.npci.org.in/what-we-do/imps/faqs
https://www.rbi.org.in/SCRIPTS/FAQView.aspx?Id=65
https://www.rbi.org.in/scripts/faqview.aspx?id=60
Disclaimer
- The information provided in this article is intended for general informational purposes only. The details, such as transaction limits, transfer charges, and processing times, may vary from bank to bank. Wonderpay Technologies Pvt Ltd. shall not be liable for any distinctness in the information. Please consult with your bank or financial institution for the most accurate and up-to-date information. Transaction fees may also be subject to applicable taxes, including GST.
- All transaction fees mentioned above are inclusive of 18% GST, which is applicable as per current regulations. Please consult your bank for the latest GST rates applicable to financial transactions.
- For more information on how we collect, use, and protect your data, please refer to our Privacy Policy.
- The services mentioned in this article, such as NEFT, RTGS, and IMPS, are provided and regulated by various financial institutions and the Reserve Bank of India (RBI). Wonderpay Technologies Pvt. Ltd. is not responsible for any changes made by these institutions.
- This article was last updated on Feb 06 2025.