What Is The Difference Between RTGS, NEFT And IMPS?

Posted By: Staff
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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.

NEFT and RTGS are two methods to transfer money from one bank to another bank in India. Both the systems are maintained by Reserve Bank of India.

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.

NEFT
NEFT is an electronic fund transfer system which operates on a DNS (Deferred Net Settlement) basis which settles transactions in batches. At present, there are 12 settlements between 8 am and 7 pm on weekdays. On Saturdays six settlements between 8 am and 1 pm are there.

RTGS
In RTGS the transactions are settled individually. The RTGS transactions are processed continuously throughout the RTGS business hours. The bank of the person to whom the money is transferred gets 30 minutes to credit it to his or her account. The RTGS window is open from 9 am to 4.30pm on weekdays and 9 am to 2 pm on Saturdays.

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 NEFTRTGSIMPS
MinimumRe 1Rs 2 lakhRe 1
MaximumNo LimitRs 10 lakhRs 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 ChargesNEFTRTGSIMPS
Amounts upto Rs 10,000Rs 2.50NARs 2.50
Amounts above Rs 10,000 upto Rs 1 lakhRs 5NARs 5
Amounts above Rs 1 lakh upto Rs 2 lakhRs 15NARs 15
Amounts above Rs 2 lakh upto Rs 5 lakhRs 25Rs 25NA
Amounts above Rs 5 lakh upto Rs 10 lakhRs 50Rs 50NA

*Additional service tax applicable

Transaction Timing of RTGS, NEFT and IMPS

Transaction TimingsNEFTRTGS
Monday to Friday8:00 AM to 7:00 PM9:00 AM to 4:30 PM
Saturdays8:00 AM to 7:00 PM9:00 AM to 4:30 PM

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

Limitations of NEFT

The transfer is not instantaneous in NEFT.
NEFT is available only on bank working days, this excludes weekends and bank holidays.

Limitations of RTGS
For doing transactions under RTGS the branches of both the account holder and the beneficiary have to be RTGS-enabled. Not all bank branches offer this facility.
Customers can't use the facility of RTGS on Sundays and holidays.

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