NEFT vs RTGS vs IMPS: Complete Comparison Guide
Understand the differences between NEFT, RTGS, and IMPS to choose the best electronic fund transfer method for your needs. All three require the beneficiary's IFSC code for successful transfers.
Quick Answer
- •NEFT (Best for regular transfers): ₹1 to unlimited, settles within 2 hours, available 24×7, lowest charges
- •RTGS (Best for large amounts): Minimum ₹2 lakh, real-time (30 mins), 24×7 available, higher charges
- •IMPS (Best for urgent transfers): ₹1 to ₹5 lakh, instant (seconds), true 24×7, moderate charges
- •All require: Beneficiary's IFSC code, account number, and bank details for successful transfers
- •Choose based on: Transfer amount, urgency, and acceptable charges for your transaction needs
Quick Comparison Table
| Feature | NEFT | RTGS | IMPS |
|---|---|---|---|
| Full Form | National Electronic Funds Transfer | Real Time Gross Settlement | Immediate Payment Service |
| Minimum Amount | ₹1 | ₹2,00,000 | ₹1 |
| Maximum Amount | No limit | No limit | ₹5,00,000 |
| Processing Time | Within 2 hours | Real-time (30 minutes) | Instant (few seconds) |
| Availability | 24×7 (including holidays) | 24×7 (including holidays) | 24×7 (including holidays) |
| Settlement | Batch-wise | Transaction-by-transaction | Real-time |
| Best For | Regular payments under ₹2L | Large urgent transfers | Instant small transfers |
NEFT (National Electronic Funds Transfer)
NEFT is a nationwide payment system facilitating one-to-one funds transfer. It operates on a deferred net settlement (DNS) basis, settling transactions in batches during the day.
Key Features:
- ✓Available 24×7: Transfers can be initiated any time, including weekends and holidays
- ✓Batch Settlement: Transactions settled in hourly batches throughout the day
- ✓No Minimum Limit: Can transfer as low as ₹1
- ✓Cost-Effective: Lower charges compared to RTGS for amounts under ₹2 lakh
NEFT Charges (Typical):
- • Up to ₹10,000: ₹2.50 + GST
- • ₹10,001 to ₹1,00,000: ₹5 + GST
- • ₹1,00,001 to ₹2,00,000: ₹15 + GST
- • Above ₹2,00,000: ₹25 + GST
*Charges may vary by bank. Many banks offer free NEFT for online transfers.
RTGS (Real Time Gross Settlement)
RTGS is designed for large-value transactions that require immediate settlement. It processes transactions individually on a real-time basis throughout the day.
Key Features:
- ✓Real-Time Settlement: Funds credited within 30 minutes
- ✓High-Value Transfers: Minimum ₹2 lakh, ideal for large payments
- ✓Secure: Transaction-by-transaction settlement reduces risk
- ✓24×7 Availability: Available round the clock since December 2020
RTGS Charges (Typical):
- • ₹2,00,000 to ₹5,00,000: ₹25 + GST
- • Above ₹5,00,000: ₹50 + GST
*Charges vary by bank. Some banks offer free RTGS for premium accounts.
IMPS (Immediate Payment Service)
IMPS is an instant interbank electronic fund transfer service available 24×7. It was developed by NPCI (National Payments Corporation of India) to enable instant money transfers.
Key Features:
- ✓Instant Transfer: Money credited within seconds
- ✓Multiple Channels: Available via mobile banking, internet banking, ATM, SMS
- ✓Transaction Limit: Up to ₹5 lakh per transaction
- ✓True 24×7: No downtime, works during bank holidays
IMPS Charges (Typical):
- • Up to ₹1,000: ₹2.50 + GST
- • ₹1,001 to ₹10,000: ₹5 + GST
- • ₹10,001 to ₹1,00,000: ₹15 + GST
- • ₹1,00,001 to ₹2,00,000: ₹25 + GST
- • Above ₹2,00,000: As per bank's policy
*Charges vary by bank and transfer method (mobile/internet banking).
Which Transfer Method Should You Choose?
Choose NEFT if:
- • Transfer amount is less than ₹22 lakh
- • Time is not critical (within 2 hours is acceptable)
- • You want to minimize transaction charges
- • Making regular bill payments or salary transfers
Choose RTGS if:
- • Transfer amount is ₹2 lakh or more
- • You need guaranteed settlement within 30 minutes
- • Making high-value business payments
- • Property transactions or large vendor payments
Choose IMPS if:
- • You need instant money transfer (within seconds)
- • Transfer amount is under ₹5 lakh
- • Making emergency payments
- • Splitting bills or sending money to friends/family urgently
Common Mistakes to Avoid
- ×Using wrong IFSC code: Always verify the beneficiary's IFSC code before initiating transfers. One wrong character can send money to the wrong account.
- ×Choosing RTGS for small amounts: RTGS has a ₹2 lakh minimum and higher charges. Use NEFT or IMPS for smaller transfers to save on fees.
- ×Expecting instant NEFT settlement: NEFT settles in batches within 2 hours. For instant transfers, use IMPS instead.
- ×Not adding beneficiary first: Most banks require you to add and verify beneficiaries 24 hours before first transfer. Plan ahead.
- ×Ignoring daily transfer limits: Banks impose daily NEFT/RTGS/IMPS limits. Check your limits before initiating large transfers.
- ×Not keeping transaction reference: Always save the transaction reference number (UTR) for tracking and dispute resolution.
- ×Sharing OTP or transaction PIN: Never share OTPs, passwords, or PINs with anyone. Banks never ask for these details via call/email.
Find IFSC Codes for Your Transfers
All three transfer modes (NEFT, RTGS, IMPS) require the beneficiary's IFSC code. Find IFSC codes for any bank branch in India: