Over the years, banks have developed more convenient ways for customers to transfer funds between banks 24/7. Nowadays, NEFT, IMPS, and RTGS are some of the most popular methods used by people to transfer funds both within the same bank and to other banks. So, the question arises: among NEFT, IMPS, and RTGS, which is the most efficient and fastest?

In this article, we will explore the basic features of these three methods, along with their charges, efficiency and limits.

NEFT

NEFT or National Electronic Funds Transfer allows users to transfer money round the clock from one account to another through online medium across India. NEFT is a nation-wide centralised payment system owned and operated by the RBI.

NEFT offers several advantages for fund transfers or receipts. It is available round the clock, every day of the year, ensuring convenience and accessibility. The system enables near-real-time funds transfer to the beneficiary account, with secure settlement. With pan-India coverage through a vast network of bank branches, NEFT facilitates nationwide transactions. The remitter can initiate transactions from home or work using internet banking if the service is offered by their bank.

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Additionally, NEFT provides positive confirmation to the remitter via SMS or email once the beneficiary account is credited. There is also a provision for penal interest in case of delays in crediting or returning transactions.

How much time does NEFT take to transfer funds?

NEFT transactions are typically settled within two hours. However, the exact settlement time can vary between different banks.

What are the transfer limit and transaction charges under NEFT?

The Reserve Bank has not set any limits on NEFT transactions. However, individual banks may impose their own limits on NEFT transfers. For transfers up to Rs 10,000, the bank charges Rs 2.5 plus GST per transaction. If the transfer amount is more than Rs 2 lakh, the charge is Rs 25 plus GST.

IMPS

This service is offered by National Payments Corporation of India (NPCI) that empowers customers to transfer money instantly through banks and RBI authorized banks.

IMPS provides robust and real-time fund transfer, offering an instant, 24×7, interbank electronic fund transfer service accessible through multiple channels like mobile, internet, branch, ATM, and SMS. IMPS is a reliable service that allows instant funds transfer within banks across India, ensuring safety and cost-effectiveness.

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How much time does IMPS take to transfer funds?

IMPS transfer facility is available 24/7 for every account holder of any bank. Once the sender’s bank approves the transaction, funds reach the beneficiary instantly.

What are the transfer limit and transaction charges under IMPS?

Under IMPS, one can transfer funds anytime and anywhere up to Rs 2 lakh each time to the beneficiary of his or her choice. The charges for IMPS transfers typically go up to Rs 25, depending on the amount and varying between banks.

RTGS

RTGS or Real Time Gross Settlement can be explained as a system where there is continuous and real-time settlement of fund-transfers, individually on a transaction-by-transaction basis. ‘Real Time’ means the processing of instructions at the time they are received; ‘Gross Settlement’ means that the settlement of funds transfer instructions occurs individually.

RTGS offers many advantages for funds transfer. It operates on a secure and reliable system, ensuring the safe transfer of funds. Unlike some other systems, RTGS transactions have no upper limit set by the RBI, allowing for the transfer of large sums of money.

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How much time does IMPS take to transfer funds?

The system is operational round the clock, every day of the year (24x7x365), ensuring real-time transfer of funds directly into the beneficiary’s account.

What are transaction charges under IMPS?

The current fee structure for RTGS transfers is as follows: For transaction amounts between Rs 2 lakh and Rs 5 lakh, the service fee does not exceed Rs 24.50 plus taxes. For transaction amounts of Rs 5 lakh and above, the service fee does not exceed Rs 49.50 plus taxes.