NEFT, RTGS and IMPS: All you need to know about

NEFT, RTGS and IMPS: All you need to know about

Almost everyone is aware of the difference between RTGS, NEFT & IMPS at user level, but not many know how these differ at the bank level. Once you understand the latter, you’ll be able to better appreciate the existence of the three different money transfer systems.

Comparison Category NEFT (National Electronic Funds Transfer) RTGS (Real Time Gross Settlement) IMPS (Immediate Payment Service)
Settlement Type Half hourly batches Real time Real time
Minimum Transfer Limit Re.1 Rs.2 lakh Re.1
Maximum Transfer Limit No Limit

 

However, maximum amount per transaction is limited to Rs.50,000/- for cash-based remittances within India and to Nepal under the Indo-Nepal Remittance Facility Scheme.

No limit Rs.2 lakh
Service Timings NEFT works on a deferred settlement basis which means the transactions are carried out in batches. Earlier, NEFT transactions were available from 8:00 AM to 6:30 PM from Monday to Friday only. However, RBI has regularised that NEFT transactions will be available 24*7 on all days of the year, including holidays. RTGS system to be available on 24×7 basis from December 14, 2020

.

 Available 365 days 24/7
Types of settlement Batches One-on-one settlement One-on-one settlement
Speed of settlement 2 hours (subject to cut-off timings and batches) Immediately Immediately
Transaction Charges No charges for inward transactions (at destination bank branches for credit to beneficiary accounts) No charges for inward transactions

Charges applicable for outward transactions for amount:

Rs.2 lakh – Rs.5 lakh: not exceeding Rs.25

Above Rs.5 lakh: not exceeding Rs.50

GST is also applicable

Charges for remittance through IMPS are decided by the individual member banks and PPIs. The taxes are included.
Payment Options Online and Offline Online and Offline Online

 

RTGS Frequently Asked Questions

Q. What does RTGS stand for?

Ans. The acronym ‘RTGS’ stands for Real Time Gross Settlement, which can be explained as a system where there is continuous and real-time settlement of fund-transfers, individually on a transaction by transaction basis (without netting). ‘Real Time’ means the processing of instructions at the time they are received; ‘Gross Settlement’ means that the settlement of funds transfer instructions occurs individually.

Q. How is the processing of RTGS different from that of National Electronic Funds Transfer (NEFT) System?

Ans. NEFT is an electronic fund transfer system in which the transactions received up to a particular time are processed in batches. Contrary to this, in RTGS, the transactions are processed continuously on a transaction by transaction basis throughout the day.

Q. Is RTGS a 24×7 system or are there some timings applicable?

Ans. RTGS is available 24x7x365 with effect from December 14, 2020.

Q. Is there any minimum / maximum amount stipulation for RTGS transactions?

Ans. The RTGS system is primarily meant for large value transactions. The minimum amount to be remitted through RTGS is ₹ 2,00,000/- with no upper or maximum limit.

IMPS Frequently Asked Questions

Q. What is IMPS?

Ans. Immediate Payment Service (IMPS) is a service provided by banks to ensure real-time interbank funds transfer. Unlike NEFT, funds can be transferred on any day of the week including holidays and weekends using IMPS.

Q. What is IMPS Timings?

Ans. IMPS can be, typically, carried out 24/7. Some bank may have time restrictions when it comes to adding a new beneficiary to make a new funds transfer. Some bank imposes a time restriction on adding beneficiaries for the sake of IMPS transfer.

Q. What is IMPS Transaction Limits?

Ans. Generally, the transaction limit for IMPS transfer is set to be Rs.2 lakh. However, banks may define their own upper limit for an IMPS transaction.

NEFT Frequently Asked Questions

Q. What is National Electronic Funds Transfer (NEFT) system?

Ans: National Electronic Funds Transfer (NEFT) is a nation-wide centralised payment system owned and operated by the Reserve Bank of India (RBI).

Q. What are the operating hours of NEFT?

Ans: The NEFT system is available round the clock throughout the year on all days, i.e., on 24x7x365 basis. NEFT presently operates in batches on half-hourly intervals throughout the day. In case of non-availability of NEFT for any reason, appropriate message will be broadcasted by RBI to all system participants.

Q. What are NEFT Maximum and Minimum Limit?

Ans. Maximum 50000 and Minimum Rs.1.

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