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Understand the difference between NEFT, IMPS and RTGS

  • March 31, 2017
  • rootroot

Gone are the days when you would have to wait for days to see whether the money you transferred had reached its destination or not. With the latest advancements in banking and in digital payments and transfers, the task of sending money has been made rather instant, with real time transfers. These days, there are a number of ways to transfer money to anywhere in the world. These online transfers mainly include NEFT, IMPS, and RTGS transfers.

What are NEFT, RTGS, and IMPS Transactions?

NEFT and RTGS transfers are a part of electronic clearing systems, meaning that these transactions can be conducted in bulk and can be repetitive.

National Electronic Funds Transfer (NEFT)

NEFT has settlement cycles running through the day. Once you opt for this transfer, the amount is not immediately transferred, but is done in the next settlement cycle. These cycles generally run at 60 minute intervals. The beneficiary and the sender both need to be a part of the NEFT network.

Real Time Gross Settlement (RTGS)

The funds are credited to the beneficiary in real time. This type of transfer is accounted in the RBI’s books and is irrevocable and final. RTGS is mostly used by big corporations for real time transactions.

Immediate Payment Services (IMPS)

This is a more consumer centric service that can be done using mobile phone services.

The Timings

The timings, during which you may use the services of these transfer might vary from bank to bank, but generally, it goes something like this:

NEFT

Settlement cycles take place every 60 minutes, but the timings are mostly for 11 hours on weekdays, 5 hours on a Saturday, and no NEFT on Sundays. For example, if your bank’s weekday NEFT timings are from 8 am to 7 pm, and you conduct a transaction at 7.10 pm, the NEFT will take place on the next working day.

RTGS

RTGS timings work pretty much in the same way as NEFT timings, except for the fact that it is practically instant and real time, so till the last working hour, you can avail an RTGS transaction, but mostly not after working hours, half days on Saturdays, and on Sundays.

IMPS

IMPS is a 24-hour service and can be used at any time.

Requirements

The details that you require to make these particular transactions are listed as follows:

RTGS and NEFT

  • Sender and beneficiary should be a part of the respective network

  • Amount to be transferred

  • Account number of the sender

  • Account number of the beneficiary

  • Beneficiary’s IFSC code

IMPS

  • Sender and beneficiary must be registered for IMPS

  • The MMID or the bank IFSC and account number of the beneficiary

  • Aadhaar numbers can also be used for transfer

  • Sender’s MPIN

What are the Transfer Limits?

NEFT

There is no minimum or maximum limit for NEFT transfers, unless you personally apply one. However, the maximum per transaction is Rs. 10 lakh.

RTGS

While some banks set a maximum limit to RTGS transactions, on individual accounts, the minimum limit for an RTGS transaction is Rs. 2 lakh. This is done to limit the number of transactions.

IMPS

There is mostly no minimum or maximum limit on IMPS transactions, but this may vary from bank to bank.

If the recent demonetization taught us something, it was definitely the importance of embracing digital payments and transactions; the widespread usage of net banking transactions is certainly a right step in that direction.

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