We have all used these words at one point or the other- or have heard these words whenever we visit banks or need to send money to someone. And we often tend to use them interchangeably. But these three terms are actually different and have different set of usage and mechanism altogether.
So let us take a moment to see how these three are different. But in order to do that we need to first find out what is common between these three that is causing the confusion.
NEFT, RTGS and IMPS are all banking terms referring to transfer of money between two different accounts belonging to two different banks. With so many nationalized and private banks in place, we often need to send or receive money to/from people having bank accounts in different banks. Hence, it was necessary to create payment systems to effect transfers between accounts of different banking entities.
First of all, let us take them one by one and understand their features. Later, we can compare all the three and get a better understanding of difference between NEFT Vs IMPS Vs RTGS and their transfer limit, charges and timings.
NEFT – Meaning, Timings, Limits and Features ?
Ravi is working in Delhi in a big MNC. He needs to send money back home to his mother. His account is in State Bank of India in Mumbai while his mother is maintaining an account in Punjab National Bank at Lucknow. He goes to State Bank of India and requests an NEFT transfer of Rs. 50,000. The clerk on the counter issues him a receipt and tells him the money will reach his mother’s account in an hour or so.
NEFT stands for National Electronics Funds Transfer. It is a widely used system to transfer funds from one bank account to another bank account in a different bank.
Following are the characteristics of a NEFT
- NEFT transaction happen in batches and not in real time
- The timings for NEFT are 8:00 am to 6:30 pm (excluding second and fourth Saturdays)
- There are 12 batches during the day, the set of transactions are settled in batches thereof
- NEFT can be done online via internet banking or offline by visiting the branch
The minimum amount for NEFT is Rs 1, and maximum has no limit.
Each NEFT transaction attracts a levy of charges based on the amount involved as below
|Rs 1- Rs 10,000||Rs. 2.50 (plus applicable GST)|
|Rs 10,000- Rs 1,00,000||Rs. 5.00 (plus applicable GST)|
|Rs 1,00,000- Rs. 2,00,000||Rs. 15.00 (plus applicable GST)|
|Rs. 2,00,000 and above||Rs. 25.00 (plus applicable GST)|
NEFT- Frequently Asked Questions
Can we stop NEFT payment?
No, although the amount reaches the beneficiary account when the next batch is processed, the amount is deducted from the payer’s account immediately. Hence we can not stop NEFT payment. However, if the beneficiary account number is wrong, or belongs to a closed account, the amount gets credited back to the sender’s account.
Is Cheque required for Neft?
This is another point of confusion. A cheque is usually required for a NEFT, but it is not mandatory for transactions upto Rs. 50,000 in value. For transaction upto Rs. 50,000, cash remittance can be made. The bank branch will invariably obtain id proof and other contact information to enclose along with the NEFT form.
However, you can always use net banking to do a NEFT transaction, where you will not require any cheque.
How much time it will take to transfer money through NEFT?
While NEFT transactions are processed in half hourly batches, the time limit recommended by RBI for the credit to show in payee’s account is two hours.
Can we do Neft on Sunday?
No, we cannot. NEFT can be done only on working days and that too within the stipulated time limits- 8:00 AM to 6:30 PM.
Ram is a businessman in Delhi, expecting a shipment from Lucknow. His supplier calls him saying that there has been acute shortage of funds and he needs an advance of Rs. 3 lac on the payment in order to process his order. But he needs the funds immediately, within 15 minutes as they are to be sent to someone else.
Now, Ram knows that NEFT will take around two hours. So he goes to the bank and tells the manager to do an RTGS transaction from his account to the supplier’s account. The money is transferred immediately and Ram’s problem is solved.
RTGS stands for Real Time Gross Settlement. As the name suggests, funds are transferred in real time to the other account. So there is no waiting time like in the case of NEFT. The credit to payee’s account is immediate.
- RTGS fund transfer happens in real time- meaning immediate transfer of funds
- The timings for RTGS are 9:00 am to 4:30 pm (excluding second and fourth Saturdays)
- The minimum amount for RTGS is RS. 2,00,000 and for maximum there is no specified limit
- You can do RTGS via internet banking or offline by visiting the branch
- Each NEFT transaction attracts a levy of charges based on the amount involved as below
|Upto Rs. 2,00,000||Rs. 25.00 (plus applicable GST)|
|Rs. 2,00,000 and above||Rs. 50.00 (plus applicable GST)|
RTGS- Frequently Asked Questions
Do we need Cheque for RTGS?
Yes. A cheque is necessary for an RTGS transaction if you decide to visit the bank’s branch for doing it.
You do not need a cheque if you do it through online internet banking facility.
Can RTGS be done online?
Yes, via internet banking provided by your bank or otherwise it can be done by visiting your branch premises.
How much time does it take for RTGS transfer?
No time, it is immediate transfer (Real Time Gross Settlement). However, RBI specifies a maximum time limit of 30 minutes for the credit to show in the payee’s account.
IMPS – Meaning, Charges and Features
It is 2:00 AM in the night. Raghav receives a call from his friend Alok. Alok tells him that he is in a nightclub and needs immediate money. His card was declined due to low balance. Raghav cannot go over to him as Alok lives in Mumbai and Raghav is in Delhi. So to help his friend, he uses internet banking and transfers funds to Alok via IMPS, which get credit in his account immediately and he is able to pay his bill.
IMPS stands for Immediate Payment Service. It serves the purpose of real time fund transfer, and that too beyond banking hours, irrespective of holidays.
How does IMPS work?
- IMPS enables real time fund transfer between bank accounts
- So it is beyond banking fund transfer, meaning you can transfer your funds irrespective of bank holiday or working hours
- You can use IMPS on various channels like ATM, SMS, Internet, Branch and even USSD
Each IMPS transaction attracts a fees as follows
|Upto Rs. 1,000||No fees|
|Rs. 1,001 to Rs. 10,000||Rs. 5 plus GST|
|Rs. 10,000 to Rs. 1,00,000||Rs. 5 plus GST|
|Rs. 1,00,000 and above||Rs. 15 plus GST|
*Please note that various banks charge different charges for IMPS. The above rate chart is the fees by ICICI bank for IMPS. Different banks may charge differently, like SBI charges no fees for transfers up to Rs. 1000.
IMPS – Frequently Asked Questions
What do I need to know to send money via IMPS to someone?
You need to know the following three details if the transfer money from a person to person
- MMID of the person you’re sending the money to
- and His/Her name
- His/Her mobile number
In order to make a person to account transfer, you require following details
- Name of beneficiary
- Account Number of beneficiary
- IFSC code of beneficiary bank
What is MMID?
MMID refers to Mobile Money Identification Number, which is a seven digit unique number representing the beneficiary’s details. Also Out of the seven, the first four digits represent the unique identification code of the bank offering IMPS.
What are the timings for IMPS?
Timings for IMPS are 24*7, irrespective of holidays.
What is the maximum amount that you can transfer via IMPS?
In transfer using account numbers, not more than 2 lakh in one instance.
In IMPS using MMID and net banking- Rs 5000 per day per customer
How much time it takes to transfer through IMPS?
Since IMPS is a real time fund transfer, the transfer takes immediately.
Difference between NEFT and RTGS and IMPS
The following table illustrates difference between NEFT, RTGS and IMPS
|MIN to MAX Amount||Rs. 1 – No limit||Rs. 2,00,000 to Rs. 10,00,000||Rs. 1 to Rs. 2,00,000|
|Transfer Time||2 hours||Immediate||Immediate|
|Available on||Weekdays: 8 am to 6:30 pm
Not on holidays
|Weekdays: 8 am to 4:30 pm
Not on holidays
|All days: all times 24*7
Also available on holidays
Now you know the difference between NEFT Vs IMPS Vs RTGS.
So what is your experience with Neft Vs IMPS Vs RTGS ? Also which one, according to you, is better?