Suresh Kumar is a 28-year corporate employee from Mumbai. He keeps transferring money too frequently but every time he makes a transfer, he is confused which option to choose. These are some of the popular options available in India for transferring money. If you are confused like Suresh while transferring money online, then here is the thumb rule.
It is advisable to choose a method that is safe, secure, and convenient for you. RTGS, NEFT, and IMPS are all electronic payment systems that allow fast and secure transfer of funds. Here is a brief comparison of the three systems:
Real Time Gross Settlement (RTGS)
RTGS is a payment system that is used for large value transactions that require immediate clearing. It is a safe and secure system for funds transfer. The minimum amount for RTGS transfer is typically Rs 2 lakh. It operates on a real-time basis, and the transaction is settled immediately. RTGS transfers are available on working days from 8:00 am to 4:30 pm. You may have to pay the transaction charges but the same have been capped by the RBI.
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National Electronic Funds Transfer (NEFT)
NEFT is an electronic payment system used for transferring funds between banks in India. It operates on a deferred net settlement basis, which means that the transactions are processed in batches at specific times during the day. There is no minimum or maximum limit for NEFT transfers, and they are available 24×7. A customer does not need to pay charges also for transferring money through NEFT. There is no charges to savings bank account customers for online NEFT transactions. Apart from funds transfer, NEFT can be used for a variety of transactions including payment of credit card dues, payment of loan EMI, inward foreign exchange remittances, etc.
Immediate Payment Service (IMPS)
IMPS stands for Immediate Payment Service, which is an instant interbank electronic fund transfer service offered by the National Payments Corporation of India (NPCI). It enables customers to make real-time money transfers between bank accounts using mobile phones, internet banking, or ATMs. It can be used to transfer funds at any time, including holidays. The transactions are processed in real-time, and the beneficiary’s account is credited immediately. There is no minimum or maximum limit for IMPS transfers.
Adhil Shetty, CEO, Bankbazaar.com, says, “Choice of online medium for transferring money depends on various factors such as the transaction amount, transaction speed, convenience, and the availability of the service. It is advisable to compare the fees and charges of each online medium before choosing the one that best suits your needs.”
Now, which one to use depends on your specific requirements. If you need to transfer a large sum of money urgently, RTGS would be the best option. If you want to transfer money quickly and don’t need an immediate transfer, NEFT can be a good choice. If you want to transfer money instantly, including during holidays, IMPS is the way to go. Additionally, each bank may have different fees and charges associated with each of these payment systems, so it’s always a good idea to check with your bank before choosing a payment system.