Banking Awareness, Difference between NEFT, RTGS, and IMPS

With the passage of time and advancement of technology, our banking system has evolved and made our life more comfortable. Online fund transfer is gaining ground, and people are increasingly using online mode of payment for daily purchases.NEFT, RTGS, and IMPS are the three essential modes for transferring money. NEFT and RTGS were introduced by the Reserve Bank of India whereas IMPS was started by the National Payments Corporation of India (NPCI). These payment systems provide flexibility and convenience to account holders. Through NEFT, RTGS, and IMPS are the same in terms of purpose, there are some differences between them. Scroll down to know the difference between NEFT, RTGS and IMPS

 

Difference between NEFT, RTGS, and IMPS

 

Purpose

  • NEFT stands for National Electronic Funds Transfer. By using NEFT, customers can transfer funds between two NEFT enabled bank accounts without visiting the bank. It is the most popular way of remitting money. 
  • On the other hand, RTGS stands for Real-Time Gross Settlement, controlled and maintained by the RBI. As the name suggests, the transfer of money takes place from one bank to another in real-time. 
  • IMPS (Immediate Payment Service) is another instant payment service that was started by NPCI. It is the most simplified and most used fund transfer facility for customers nowadays. 

 

Type of settlement 

  • In the case of NEFT, Funds are transferred from one bank to another in half-hourly batches throughout the year.
  • Transactions made through RTGS are done immediately.
  • With IMPS, one can do the transaction at any time and on any day. IMPS is available 24×7.

 

Transaction limits

  • There is no minimum amount or maximum amount for transferring funds through NEFT. However, there is a limit on one-time cash transactions up to Rs. 50,000.
  • The minimum limit for a transaction through RTGS is Rs. 2 lakhs, but there is no maximum limit.
  • There is no minimum limit for transferring funds through IMPS, but one can not transfer more than Rs. 2 lakhs.

 

Timing for transactions

  • You can transfer funds via NEFT every working day between 8 a.m to 6 p.m, and on Saturdays between 8 a.m to 1 p.m, NEFT is not available on Sundays and bank holidays.
  • Transfer of funds through RTGS can be made every day between 8 a.m to 7 p.m except on Sundays and bank holidays.
  • Through IMPS, one can transfer money at any time of the day. IMPS is available to customers 24×7 throughout the year.

 

GST charges

  • If you transfer money through NEFT, you have to pay between Rs. 5 to Rs.15, depending on the amount. For instance, if you transfer up to Rs 10,000, you have to pay Rs 2.50. If you are transferring more than Rs. 10,000 and up to 1 lakh, then you have to pay Rs. 5 as GST charges and so on.
  • In the case of  RTGS, the GST charge ranges from  Rs. 30 to Rs.55. The costs vary from bank to bank as well.
  • For IMPS, the banks charge Rs. 5 for the transaction of amount up to 1 lakh, and Rs. 15 is charged for amount up to 2 lakhs.