What is Difference Between NEFT | RTGS & IMPS – Timing | Limits | Charges

What are Difference Between NEFT, RTGS and IMPS?

What is the difference between NEFT RTGS and IMPS? Now India is gradually becoming digital, so why the Banking Sector stays behind. Banking is being used nowadays even sitting at home. You can do some services like NEFT, RTGS, and IMPS from your mobile.

Now that day was not there when people had to stand in long queues in banks, even for a small job. It seemed as if from outside that it was not a bank, a temple where people came to visit.

Nowadays I do not see any reason here for destroying my precious time when you can do your work easily from your room, from the office or from a place where you get an internet connection.

With your bank’s net banking facility, you can also enjoy many banking services while sleeping on your bed. Whether it is a bill of your credit card or application for personal loan You do not need to go out of your house for this.

Modern Banking solutions such as Real Time Gross Settlement (RTGS), National Electronic Funds Transfer (NEFT), and Immediate Payment Service (IMPS) have simplified the payment process. And whatever we do for such services will be reduced as it helps us to make transactions faster, easier and safer.

There will be a lot of people who have to use these services but do you have any information about the difference between these services if not, today you will get full information about this topic. So without delay, let’s start and know what is the difference between IMPS, NEFT, and RTGS.

Different Ways of Money Transfer In India

Most people or people often use one or more online money transfer modes in their lifetime. With the help of modern technology-based banking, now everyone is taking advantage of this technology.

Now with the help of online banking, everyone is able to do all this work even sitting at home. When it comes to money transfer, one account to another account, so most banks are managing a lot of options, which are based on many reasons like customer requirement.

Banks are managing multiple transfer methods like National Electronic Funds Transfer (NEFT), Real Time Gross Settlement (RTGS), Immediate Payment Service (IMPS), etc. Different aspects such as the value of the transaction, transfer speed, service availability, and other factors depend on which people should use.

All these transactions make you manage different types of features and flexibility. Since all of these modes have their own advantages and disadvantages, they provide flexibility and convenience to the customers. With it, many banks own digital wallets that manage additional methods to do online fund transfers.

Difference Between NEFT, RTGS and IMPS?

Here the table below illustrates the difference between RTGS, NEFT & IMPS.

Difference Between RTGS, NEFT and IMPS
Minimum transfer value Rs.1 Rs.2 Lac Rs.1
Maximum transfer value No limit No limit Rs.2 Lac
Type of settlement Batches One-on-one settlement One-on-one settlement
Speed of settlement 2 hours (Depends on batches) Immediately Immediately
Service availability 24*7*365 Days Weekdays: 7:00 a.m. – 6:00 p.m Saturdays: 9:00 a.m. – 4:30 p.m Sunday & bank holidays: Unavailable 24/7
Transaction fee No Fee No Fee Rs.10000 – Rs.2.5 Rs.10000 – Rs.100000 – Rs.5 Rs.100000 – Rs.200000 – Rs.15
Online/Offline Both Both Online

How to Transfer Fund in India

Indians have many such fund transfer methods. Due to the demand for the latest technology and demand for online-based service, any such aspect has not been left anymore, which is still to be seen. From banking and financial institutions to governing bodies, and private businesses, they are using all the latest technology, which has completely reduced the distance between these customers, partners, and vendors.

In the way the number of online users is increasing in India, it can not be denied that more and more people prefer to transact digitally, to send money online. Online fund transfers are not only fast, efficient, and convenient, but can also be used easily for accounting and documenting purposes. In comparison to other manual methods, online transfers are much superior, in terms of reliability and cost factor.

Whatever system you want, whether they are NEFT, RTGS, or IMPS, they work in accordance with all robust fund transfer methods and allow people to transfer money to businesses and businesses. Anywhere in the world and at any time.

Now, most banks are providing Net Banking facility to their customers. A computer or a smartphone that has internet facility, can access any bank account holder fund transfer section and use any of the online banking services which are managed by the bank, they do not need to go to physically bank.

Types of Fund Transfer in India

If seen, many such systems are available for online transfer to fund such as digital wallets, UPI, etc. However, NEFT, RTGS, and IMPS are very common and these are most commonly used. If a fund is initiating to transfer, then the person who is transferring the money, also called the originator or remitter or sender has the basic account details of the beneficiary.

Details such as account number, beneficiary’s name, account number, IFSC, and the name of the branch, etc. All this information is very important for any transfer methods. It depends on the originator, which ensures that all information given for fund transfer is correct or not.

Before understanding any fund transfer methods and before knowing the difference between them, it is important to first learn the basic factors of these payment systems. These important factors distinguish these online fund transfer methods in different parameters –

  • Fund Value – Your fund value is very important to decide which transfusion methods should be used. The value of your fund determines that you use a conic sort transfer method. With this, if you add a new beneficiary, you will be allowed a limited amount of fund to transfer. So if you are new to this online transferring funding then you will be the best advocate of your bank to fund transfer.
  • Timings (service availability) – Some of the methods are fund transfer, which allows the user to 24/7, for online transfers, there are only a few allow only in specific timings. So before fund transfer, it is very important that you know about the timings of these funds, whatever you are using the fund transfer method. Because some fund transfer methods cannot be used in holidays.
  • Fund Settlement Speed – Generally, it has been found that people pay more attention to the settlement speed factor after the fund value. All fund transfer methods have different Fund settlement speed. Fund settlement speed indicates how long it takes for any fund to settle down or reach the account of the beneficiary when it has been initiated once.

In most cases, people look at transaction speed and choose transfer methods but one thing should be kept in mind that the more your settlement speed, the more you can have to pay additional charges.

  • Charges – According to the Reserve Bank of India (RBI), banks decide how much transaction charges will be charged for fund transfer methods from the angle. These charges are set on some things which are the total value of the fund, settlement speed, and other features/flexibility provided by the bank.

The government also imposes a service charge above the fund transfer transaction. Both the originators and the beneficiaries are advised to get the latest list of transaction fees from the website of your bank’s website and also know how much charges are charged for online transfers. Because different banks have separate charges.

  • Transaction Limits – On the basis of safe banking features and healthy practices, all banking and financial institutions determine transaction limits over most of their banking and financial products. RBI regulates all these transaction limits and also maintains the facts of the second fund transfer with Board for Regulation and Supervision of Payment and Settlement Systems (BPSS).

BPSS is a subcommittee in the Central Board of RBI and it has been designed specifically, which decides and regulates the payment systems in India or India. With this, BPSS also supervises the payment and settlement systems. All payments and settlement systems in India are regulated only under the Payment and Settlement Systems Act, 2007 (PSS Act).

Because there are many factors involved in the transfer of funds, but these were some very important and basic factors that distinguish one transfer method from another. In this case, all the factors put direct effect above the transfer methods, it makes us easier to understand what the differences are between the transfer option.

Difference Between RTGS, NEFT, & IMPS?

The customer’s eligibility and level of access to online transfer methods which is a bank grant are very important. With this, the value of the fund value, timings, settlement speed, and other factors depend on these online fund transfer methods, to the customer, to know what transfer method they should choose. At present, NEFT, RTGS, IMPS, and UPI are among the most popular methods to transfer funds to India, along with it, in the context of some notable differences, which will help you understand them.

  • NEFT – Funds are done through transfer batches according to this method (which is based on Deferred Net Settlement (DNS)) and that too in certain specific time of the day. If fund transfer is initiated after the cut-off time, then it will be settled next working day. Now talk about NEFT’s fund transfer requests in 2 batches in a Day. You can transfer Money 365*24*7 through NEFT.

The facility of NEFT also available on Sundays and Bank holidays. One of the biggest advantages of NEFT’s cost-effectiveness, where a person who wants to transfer small value, does not need to worry about transaction fees and service charges. Because with a small fee, they can easily transfer their payments through NEFT. Hence NEFT is a very popular and highly effective method for online fund transfers.

Transactions under the NEFT are easily initiated and settled. A bank account is available from any particular bank to another bank’s account at any place in India, without any extra cost, with only the standard charges, it is necessary that both of them Banks should have NEFT transfer network (NEFT-enabled) enabled. With this addition, the fund can be transferred only after adding a beneficiary.

  • RTGS – Through these types of transfer methods fund transfers can be done from Rs.2 lakh, but the biggest benefit of this is that RTGS is a fastest / real-time settlement mode. Like sender accounts are debit, however, funds are accessed on the receiver’s account. But for this facility, the RTGS facility should be enabled in both banks.

If seen, all the banks RTGS transfer network which is facilitated by the RBI, are available in this facility. It is advised that individuals should be in direct contact with their bank and should refer to their online banking section so that they can discover whether they are eligible for the convenience of this RTGS payment system. RTGS transaction fees are more than the other methods.

RTGS has a minimum and maximum fund value limit, but it is a very efficient medium to transfer high-value funds which will soon have to transfer their funds. Efficiency, speed, and reliability factors are some of the factors that make RTGS a very popular online fund transfers medium.

New RTGS Timing Window

    • Open for Business-7 am
    • Customer transactions (Initial Cut-off)-6 pm
    • Inter-bank transactions (Final Cut-off)-7.45 pm
    • Intra-day liquidity (IDL) Reversal-7.45 pm to 8.00 pm
    • End of Day-8.00 pm
  • IMPS – This is the most popular and fastest methods for fund transfer now, so IMPS is widely used in most banks. Where else fund transfer is closed during bank holidays and off working hours, IMPS is continuously working 24/7 so that you can fund transfer at any time of the day.

Like NEFT, you can transfer low-value funds to IMPS but in this, you can immediately settle the funds which make it unique. By a glance, IMPS acts as a combined version of NEFT and RTGS where the sender does not have to worry about the size and service availability of the fund and with this, your funds transfer very soon.

The facility of IMPS is provided only on the internet and online banking services. Some banks may offer it to mobile banking users at the end of the SMS-based IMPS service. Many digital wallets in India use IMPS services to send money from one individual account to its bank account. Although IMPS offers a fast fund settlement facility, its transaction fees are less like NEFT.

Some important things that should be addressed before initiating the Fund Transfer.

Here I will give you information about some important topics that you have to do before fund transfer initiate.

  1. Timings – The timings of all fund transfer methods vary according to banks. Because NEFT and RTGS are largely based on the operation of the bank’s hours, their location and specific working hours.
  2. GST – GST also applies to transaction fee as per the latest norms which are changing.
  3. Transaction Fee – A fee is also charged to initiate the transfer and not to receive funds.
  4. Transfer Network – Here the sender will have to check whether the beneficiary’s account is eligible for receiving funds or not. Because they need to be a part of the transfer network to receive the fund.

Here We have listed the detailed difference between IMPS, NEFT and RTGS. I hope this will be helpful for everyone.

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