Difference between NEFT, RTGS and IMPS for online funds transfer
NEFT (National Electronic Fund Transfer):
It is an electronic fund transfer system which operates on a Deferred Net Settlement (DNS) basis and settles transactions in batches at a specific time of the day mandated by the RBI. Currently, the NEFT system operates in half hourly batches from 08.00 AM to 07:00 PM on all working days including working Saturday (excludes Sundays/Holidays/ 2nd and 4th Saturdays). So once you opt for this mode of transfer, the amount is not immediately credited but is done in the next settlement interval.
This mode has no minimum amount limit but the maximum amount is capped at Rs 10 Lacs.
Service charges are kept low and vary from Re 1 to Rs 5 (18% GST extra).
RTGS (Real Time Gross Settlement):
In this funds transfer method, instruction processing takes place at real-time and hence the funds get settled almost immediately. RTGS windows are available from 9 AM to 4:30 PM from Monday to working Saturdays. It is the fastest possible interbank money transfer facility available through the secure banking channels in our country and is widely used by individuals and businesses which require immediate settlement of high-value funds.
This mode has a minimum transfer amount limit of Rs 2 lacs and a maximum limit of Rs 10 Lacs.
Service charge is Rs 5 + GST for transfers of Rs 2 to 5 lacs and Rs 10 + GST for above Rs 5 Lacs.
IMPS (Immediate Payment Service):
Though being a relatively newer service it is one of the most popular and fastest methods of fund transfer available. It involves a transfer mechanism through mobile phones and unlike other methods of fund transfer, it is available 24/7 even on bank holidays and Sundays. It includes the pros of both NEFT and RTGS allowing users to send money instantly without any minimum transfer limit. There are options to carry out Person to Account(P2A), Person to Person(P2P) & Person to Merchant(P2M) transactions from mobile, Internet banking or ATMs.
There is no minimum transfer amount limit but the maximum limit is restricted to Rs 2 Lacs.
Service charges vary from Re 1 to Rs 3 + GST