IMPS vs RTGS vs NEFT: Full form, timing, transfer limit, and differences (2024)

If you’re a business owner in India who has recently started implementing digital transactions in your business, your knowledge shouldn’t be limited to net banking and card payments. If you’ve heard about NEFT, IMPS, and RTGS, you would already know that they are used to transfer funds from one account to another. However, are you well-versed in the difference between the 3 modes?

Without knowing the difference between the three methods, you had no way of knowing which one would work for you. Let’s fix that. Read on to understand the three methods and how each one can help you. We’ve done the research so you won’t have to.

NEFT (National Electronic Funds Transfer)

With NEFT, you can transfer any amount to the recipient’s account in a one-on-one transfer basis.NEFT transactions don’t have a maximum limit for funds that can be transferred in a single day.

– NEFT transfer timings

The NEFT system is available round the clock throughout the year on all days (24x7x365). Funds are transferred in batches that are settled in 48 half-hourly time slots throughout the day.

– NEFT transfer limits

There is no maximum or minimum limit on the amount of funds that could be transferred through NEFT. With NEFT, you can initiate transactions to transfer funds from one bank account to another throughout India. However, you must make sure that the banks are a part of the NEFT transfer network (another way to say this is that the banks should be NEFT-enabled).

– How to do NEFT transfer

Totransfer funds via NEFT, all you have to do is log in to your net banking portal and add the recipient as a beneficiary.You’ll need to enter details like their name, account number,account type and IFSC code under theAdd New Payeesection. Once you choose NEFT as the preferred mode of transfer and enter the amount to be transferred, the fund transfer will be completed.

RTGS (Real Time Gross Settlement)

Business owners can use RTGS when they need to transfer large amounts instantly.One advantage that RTGS has over the other methods is the transaction speed, since the entire amount is transferred in real time.

– RTGS transfer timings

RTGS is available for customer and inter-bank transactions round the clock — except for the interval between ‘end-of-day’ and ‘start-of-day’ processes (these timings will be duly broadcasted through the RTGS system).

– RTGS transfer limits

There’s a minimum limit of Rs. 2 lakhs for RTGS transactions, and there’s no maximum limit as such.

To get an RTGS-enabled account, you can either contact your bank or check youreligibility status in your online banking portal. If you’re using RTGS for a fund transfer, make sure that both you and the recipient have RTGS enabled accounts.

– How to do RTGS transfer

To transfer funds via RTGS, log in to your banking portal and add the recipient as a beneficiary by entering details like their name, account number,account type, and IFSC code. Then choose RTGS as the mode of transfer and enter the amount to be transferred, and the fund transfer will be completed.

IMPS isanother real-time payment service, but the distinguishing factor is that IMPS is available ²⁴⁄₇ and you can avail the service even on bank holidays. Using IMPS, you can transfer comparatively lower amounts, up to Rs. 2 lakhs, instantly.

So, you can think of IMPS as the fund transfer mode that has the best features of both RTGS and NEFT. You can transfer amounts as low as you want, any time you want, with instant results. Though IMPS services are mostly used online,afew banks offer SMS services.Check with your bank to see if they support IMPS transfers via SMS.

The IMPS service is offered by the National Payments Corporation of India (NPCI). Their services allow customers to transfer funds through both banks and Prepaid Payment Instrument (PPI) issuers. PPIs are instruments that allow you to purchase goods and services or initiate fund transfers using the value that is stored in the PPI. Some examples of PPIs include smart cards, magnetic stripe cards, digital wallets, and vouchers. Individuals without bank accounts can transfer funds by IMPS using PPI.

– How to do IMPS transfer

To transfer funds via IMPS, you should first register for the mobile banking service of the concerned bank and generate a Mobile Money Identifier (MMID) and MPIN from the bank. You should make sure that your beneficiary or recipient has the MMID too.

Once you’ve registered,log in to your net banking portal and select IMPS as the preferred mode of transfer. Then you should fill in details like the recipient’s mobile number, the recipient’sMMID, the amount to be transferred, and your MPIN. Once this is done, you will receive a confirmation message via SMS.

Advantages and benefits of online money transfer services

Online fund transfers are reliable, fast, and convenient. Using these services, you can transfer funds easily without having to wait in long queues to withdraw cash or try to be physically present at the bank. They also offer choice and flexibility — if you consider factors like the value of funds you want to transfer, transaction speed, cost and timing, you can select the service that suits your needs best for each transaction.

Still having trouble completing vendor payments?

If you’re using Zoho Books, you can carry out B2B payments right from your Zoho Books account as soon as youreceive a bill from your vendor.All you have to do is enter the amount to be transferred, the recipient’s name, and account number.Then chooseNEFT, RTGS, or IMPSas the preferred transaction type and clickSend. It’s simple!You caneventrack the status of your transaction (processed or in progress) onceyou’ve initiatedthe transfer.