RTGS vs NEFT vs IMPS: Key Differences, Transfer Limits and Fees

RTGS, NEFT and IMPS are some of the online fund transfer options that you can use for seamless money transfer between bank accounts without visiting your bank branch. However, there are a few differences between RTGS vs NEFT vs IMPS, in terms of the amount of money you can send, applicable charges and processing speed. 

Read this blog and understand the definition and features of these facilities and their differences to choose one that suits your fund transfer needs.

Quick Overview

• RTGS, NEFT and IMPS are online fund transfer options from one bank account to another.
• RTGS and IMPS allow for instant fund transfer and settlement.
• NEFT processes fund transfers in batches and thus needs 30 minutes to 1 hour to settle.
• RTGS charges vary based on the transfer amounts, while IMPS charges depend on the banks.

Definition of RTGS

RTGS stands for Real Time Gross Settlement, and it is regulated by the Reserve Bank of India. It is a secure fund transfer method, allowing bank account holders like you and businesses to transfer a large amount of money. 

This fund transfer technique allows you to do an immediate fund transfer or settlement. It operates on a one-to-one settlement basis, so you can transfer a specific amount of money directly to an individual account rather than in batches.

Key Features of RTGS

Before delving into the differences between RTGS vs NEFT vs IMPS, let us explore the features of RTGS:

• RTGS allows immediate fund transfer, and the recipient gets the funds in their account instantly.
• RTGS is RBI-regulated, making it a trustworthy fund transfer option with a lesser chance of fraud or unauthorised deductions.
• It also removes any middleman for fund transfers and allows you to send money to your beneficiary directly. 

What is NEFT?

NEFT or National Electronic Funds Transfer allows you to send money from your bank account to another account electronically. Unlike RTGS (Real Time Gross Settlement), NEFT allows you to transfer funds in batches rather than in real-time.

However,  when you are transferring money using NEFT for the first time, it might take up to two hours to complete. The Reserve Bank of India (RBI) takes approximately 30 minutes to verify the beneficiary's account details to ensure a secure transfer.

Key Features of NEFT

Here are the key features of NEFT you must know to understand the IMPS vs NEFT vs RTGS difference:

• NEFT supports PAN-India fund transfers across all NEFT-enabled banks, allowing seamless transactions between any two bank accounts in the country.
• You can transfer as little as ₹1 with no upper limit, making it suitable for both small and large transactions.
• In addition to person-to-person transfers, NEFT can be used for paying credit card bills, EMIs, loan repayments, and other online payments.

Understanding the Meaning of IMPS

IMPS or Immediate Payment Service is another one-to-one fund transfer method, which allows you to send money to another account instantly. It is also an online solution for money transfers for various purposes and is available 24*7.

It allows you to transfer a large amount of money, i.e. up to ₹5 lakh. Also, you can send an amount as small as ₹1 using IMPS. 

Features of IMPS

To distinguish the RTGS vs NEFT vs IMPS, take note of the features of IMPS:

• IMPS allows you to transfer funds between two accounts of your bank or from your bank account to an account of another bank.
• You can use your mobile banking app, net banking, and ATM to perform an IMPS transfer.
• If you are using IMPS to send money to your loved ones or pay utility bills, the recipient gets the amount instantly.

Difference Between RTGS vs NEFT vs IMPS

Below is a summarised view of the differences between the transfer systems:

Applicable Charges and Maximum Limits of RTGS, NEFT and IMPS

Take note of the NEFT, RTGS, and IMPS charges to stay informed about these money transfer modes:

Which One to Choose Between RTGS vs NEFT vs IMPS?

Here is a detailed breakdown of which one to choose between these three:

• RTGS: For instant settlement. Your recipient will have this amount instantly. This makes it suitable for an urgent fund transfer situation. 
• IMPS: In emergencies, you can send any amount from ₹1 upwards instantly without any upper limit.
• NEFT: It processes fund transfers in batches and completes the transfers every 30 minutes during the day, making it suitable for non-emergency transfers.

Important Pointers to Consider Before Choosing Between RTGS vs NEFT vs IMPS

Take note of some vital pointers before choosing a suitable fund transfer mode:

• Limits of Money Transfer: Before choosing one of the options, you must consider their fund transfer limits. RTGS and NEFT do not have upper transfer limits, while IMPS allows sending up to ₹5 lakh.
• Transaction Charges: You must keep in mind that for RTGS transfers, you must pay between ₹25 and ₹50, depending on the transfer amounts. 
• Compatibility of Banks: To send funds between bank accounts using any of the methods, check if the recipient bank supports the payment modes. 

Final Word

The differences between RTGS vs NEFT vs IMPS lie in their functionalities, processing speed, transfer limits, etc.  Using RTGS or IMPS, you can send funds or pay bills instantly. Regardless of the method, all three make online transactions convenient, eliminating the need to visit a bank branch.

Platforms like Stable Money offer easy online investments, with Fixed and Recurring Deposits available at up to 9.10% interest, all without needing a bank account.

Download the Stable Money app today and start investing smarter!