What Is The Difference Between RTGS, NEFT And IMPS?

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Individuals have started opting for  social media and mobile apps for most of the banking transaction.

However, one needs to use online banking facility if the transferring amount is high. There are three different ways like RTGS, NEFT and IMPS through which we can transfer funds immediately.

What Is The Difference Between RTGS, NEFT And IMPS?

Immediate Payment Service (IMPS) is a remittance service through which one can transfer money anytime, anywhere across India

The basic difference between RTGS and NEFT lies in the settlement timings and amount.

Real Time Gross Settlement (RTGS) is based on the gross settlement where the transaction is settled on an instruction by instruction basis.

National Electronic Funds Transfer (NEFT) is an electronic fund transfer system which settles transactions in batches.

What is the basic requirement for transfer of funds through NEFT and RTGS?

To transfer funds, one needs the account number of the beneficiary, IFSC Code of Bank Branch and name of the beneficiary and amount to be transferred.

What is the Difference between RTGS, NEFT and IMPS?

National Electronic Funds Transfer (NEFT) is transfer of funds online by a financial institution, mainly for the banks in India.

NEFT is an electronic fund transfer system that operates on a Deferred Net Settlement (DNS) basis which settles transactions in batches. 

NEFT has no limit either minimum or maximum - on the amount of funds that could be transferred using NEFT.

RTGS

RTGS is based on the gross settlement where the transaction is settled on an instruction by instruction basis.

In RTGS the minimum amount should be above Rs 2 lakh and maximum amount is Rs 10 Lakh.

IMPS

IMPS basically involves a transfer mechanism using the mobile phone. A host of banks allow the transfer through this mechanism including the reputed banks like State Bank of India, ICICI Bank and Axis Bank.

Here is the limit is set by the bank. For example, State Bank of India permit only one beneficiary in a calendar day. Which means one cannot send money through IMPS for more then one beneficiary in a day.

Transaction Limits NEFT RTGS IMPS
Minimum Re 1 Rs 2 lakh Re 1
Maximum No Limit Rs 10 lakh Rs 2 lakh

Transaction Charges for NEFT - RTGS - IMPS

NEFT:

Transaction Charges for NEFT

  • Amounts upto Rs 10,000 R s 2.50
  • Amounts above Rs 10,000 upto Rs 1 lakh is Rs 5
  • Amounts above Rs 1 lakh upto Rs 2 lakh is Rs 15
  • Amounts above Rs 2 lakh upto Rs 5 lakh is Rs 25
  • Amounts above Rs 5 lakh upto Rs 10 lakh is Rs 50

However, there is additional service tax applicable to all the amounts transferred.

RTGS:

There are no charges applicable to receive an amount.

  • Charges applicable for only Outward transactions
  • Amount above Rs 2 lakh upto Rs 5 lakh - Rs 25
  • Amount above Rs 5 lakh upto Rs 10 lakh - Rs 50

However, there is additional service tax applicable to all the amounts transferred.

Also, an additional amount charged from Re1 to Rs5 is also which is applicable to RTGS transaction done after 12:30 PM.

IMPS:

  • For amount upto Rs10,000 is Rs 2.5
  • For range of Rs10,000 to Rs 1,00,000 is Rs 5
  • Range Rs1,00,000 to Rs 2,00,000 is Rs 15

However, there is additional service tax applicable to all the amounts transferred.

Transaction Charges NEFT RTGS IMPS
Amounts upto Rs 10,000 Rs 2.50 NA Rs 2.50
Amounts above Rs 10,000 upto Rs 1 lakh Rs 5 NA Rs 5
Amounts above Rs 1 lakh upto Rs 2 lakh Rs 15 NA Rs 15
Amounts above Rs 2 lakh upto Rs 5 lakh Rs 25 Rs 25 NA
Amounts above Rs 5 lakh upto Rs 10 lakh Rs 50 Rs 50 NA

*Additional service tax applicable

Transaction Timing of RTGS, NEFT and IMPS

Transaction Timings NEFT RTGS
Monday to Friday 8:00 AM to 7:00 PM 9:00 AM to 4:30 PM
Saturdays 8:00 AM to 7:00 PM 9:00 AM to 4:30 PM

In IMPS, funds can be transferred any time during the week or weekends.

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Read more about: rtgs, neft, imps
Story first published: Monday, June 8, 2015, 12:49 [IST]
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