Difference Between NEFT, RTGS and IMPS

The introduction of different payment systems has made fund transfers much easier and faster than ever. Earlier, cheques and demand drafts took several days to transfer money. For instance, if you had to pay a loan EMI, you had to deposit the cheque several days before the due date to make the payment. However, today, you can transfer funds from one bank account to another almost in real-time from anywhere. 

NEFT, RTGS, IMPS, etc., are some of the most commonly used fund transfer options in India. In the following sections, we will understand the difference between IMPS, NEFT, and RTGS and decide which is the best option available.

Comparison Between NEFT, RTGS and IMPS

Here are a few NEFT, RTGS and IMPS difference points:

Parameter	NEFT	RTGS	IMPS
Service Availability	24x7	24x7	24x7
Fund Settlement Time	Half-hourly batches	Real-time	Real-time
Payment Medium	Both offline and online	Both offline and online	Online only
Processing Speed	Slow	Fast	Faster
Minimum Transfer Limit	Rs 1	Rs 2 Lakh	Rs 1
Maximum Transfer Limit	No Limit (Exceptions Apply)	No Limit	Rs 2 Lakh

Also Read: What is The Difference Between NACH And ECS

NEFT, RTGS and IMPS Full Form

Here is an overview of each payment method’s full form and meaning:

NEFT

NEFT stands for National Electronic Funds Transfer: It is an online system of payment that facilitates one-to-one money transfers. You can electronically transfer funds from your account to another person’s account through a NEFT. However, one drawback is that the transfer does not take place in real-time but in half-hourly batches.

RTGS

RTGS stands for Real-Time Gross Settlement: It is an online payment system to transfer funds from your account to another person’s account in real-time. 

IMPS

IMPS stands for Immediate Mobile Payments Services: It is an online payment system that facilitates fund transfers between accounts real-time. The best thing is that you can use this facility to transfer funds 24/7, including bank holidays.

Also Read: Key Differences Between CGST & SGST

NEFT, RTGS and IMPS Limit

Before choosing one among NEFT, RTGS and IMPS, it's essential to understand their minimum and maximum transfer limits. Here’s a view:

	NEFT	RTGS	IMPS
Minimum Transfer	Rs 1	Rs 2 Lakh	Rs 1
Maximum Transfer	No Limit (Exceptions Apply)	No Limit	Rs 2 Lakh

NEFT

You can transfer a minimum of Re 1 with NEFT. It has no maximum limit for the transfer amount. However, according to the Indo-Nepal Remittance Scheme, a maximum amount of Rs 50,000 for cash remittances is allowed between Nepal and India. 

RTGS

When you opt for an RTGS, you must transfer at least Rs 2 Lakh with the method. However, this payment option has no upper limit.

IMPS

With IMPS, you can transfer an amount between Rs 1 and Rs 2 Lakh to another person’s account. 

Also Read: Know the Difference Between Term Loan and Working Capital Loan

NEFT, RTGS and IMPS Charges

Here is an overview of the IMPS RTGS NEFT difference in applicable charges:

Transaction Type	Applicable Charges
NEFT Charges	No Transaction  Charges
RTGS Charges	Applicable for outward transactions
IMPS Charges	As per the bank’s policy

NEFT

An NEFT transfer involves no transaction charges for crediting money to a beneficiary’s account at a destination bank branch.

RTGS

No transaction charges are applicable for inward and online transactions. However, outward transactions are chargeable. You must pay Rs 25 for transfers between Rs 2 to 5 Lakh and Rs 50 for transfers above Rs 5 Lakh. GST is also applicable. 

IMPS

IMPS transaction charges vary based on the member bank and PPI’s policy.

Also Read: Difference Between Loan Write-Off and Loan Waive-Off

NEFT, RTGS and IMPS: Which is better?

Now that you know the NEFT, IMPS and RTGS difference, you must choose your payment method according to your financial needs. For instance, if you want to pay loan EMI online, an NEFT or IMPS will be more appropriate. You may consider RTGS to transfer a larger amount. To decide upon a suitable payment system, you must consider the following factors: 

Timings: Remember that the timing for making fund transfers may vary from bank to bank. While NEFT and IMPS are 24/7 payment modes, RTGS operating times will vary based on bank and location.

Transaction Charges: Consider the transaction charges before choosing a payment method. While NEFT does not involve any transaction charges, RTGS has charges applicable on outward transactions, and IMPS charges vary based on the bank's policy.

Network: Try using a payment network that both the receiver and the sender are a part of. It will ensure a successful funds transfer without any additional charges.

Source of Payment: NEFT, RTGS and IMPS, all three allow online transactions. However, NEFT is the only method that also allows offline money transfers. You can visit your bank branch and fill out an NEFT transfer form to transfer money. Therefore, choose NEFT if you wish to transfer funds offline.

Also Read: Key Differences Between Demand Loans and Term Loans

Paying Personal Loan EMI Using Internet Banking

Here is a stepwise procedure to pay EMIs for your Personal Loan online:

• Visit the lender’s website.
• Go to ‘Quick Pay’ and click ‘Pay Online’.
• Choose the ‘Internet Banking’ option.
• Select your bank.
• Click ‘Pay Now’.
• Enter your Loan Account Number or Application ID.
• Confirm your loan account details and the total due amount.
• Select payment mode, enter net banking details, and make payment.

Choosing Loan EMI Payment Method

Once you obtain a Personal Loan online, you can pay its EMIs using any of the following methods:

• Internet Banking: Select your bank, enter your net banking details, and provide your loan account number and EMI amount to pay the EMI.
• E-Wallet: Use e-wallets like Paytm, PhonePe, MobiKwik, or Airtel Payments Bank, click on ‘Pay Now’, enter the loan EMI amount, and add money to your e-wallet to make the payment.
• Cash Card: If you have a cash card, select this option to pay loan EMI online and enter the cash card details to make the payment.
• Debit Card: You can also use your debit card to pay loan EMI online. Select the option and enter your debit card details, CVV, and OTP to pay the EMI.
• UPI: UPI is the new-age method of paying loan EMIs online directly from your bank account.

Also Read: Loans vs Advances : Check Top 7 Key Differences

Conclusion

NEFT, RTGS and IMPS are widely used payment systems in India. While you can use all these services 24/7, NEFT does not transfer funds in real-time. Instead, it takes place in half-hourly batches. Consider the payment method’s timing, network, charges, and payment sources to decide upon an appropriate medium. You can also use these methods to pay EMIs for a Hero FinCorp Personal Loan online and avoid late payment charges.

Frequently Asked Questions

1. Which transfer is faster, IMPS or NEFT?

IMPS is faster. NEFT is slower as it clears payments in half-hourly batches.

2. What are the timings of NEFT, RTGS and IMPS?

All NEFT, RTGS and IMPS payment methods are accessible 24/7. However, NEFT is slower with payments in half-hourly batches. 

3. Can I use IMPS for international transactions?

No, you cannot use IMPS for international transactions.

4. Are there any service charges for using RTGS?

Although inward and online transactions have no transaction charges, outward transactions are chargeable with Rs 25 for transfers between Rs 2 to 5 Lakh and Rs 50 for transfers above Rs 5 Lakh (GST extra). 

5. Can I use NEFT or RTGS for international money transfers?

International money transfers may be possible with RTGS.