difference between imps neft and rtgs

Difference Between IMPS, NEFT and RTGS: Which is Best for Money Transfer?

In today’s world, money transfer has become super easy and quick. With the introduction of various electronic payment systems, one can easily transfer money within seconds. In India, people commonly use IMPS, NEFT and RTGS for transferring funds. But what’s the difference between them and which is best? Let’s have a look.

IMPS

Immediate Payment Service (IMPS) is an instant inter-bank electronic fund transfer service. It can be accessed through mobiles, internet and bank branches. The maximum amount you can transfer through IMPS is Rs. 2 lakh. The transaction is completed in real-time, and you don’t have to wait for the amount to reflect in your account. The charges for IMPS are generally low and sometimes even free.

NEFT

National Electronic Funds Transfer (NEFT) is another electronic payment service that is used for inter-bank funds transfer. Unlike IMPS, NEFT is not an instant service and takes about 1-2 hours for the transfer to be completed. The maximum amount you can transfer through NEFT is Rs. 10 lakh. The charges for NEFT vary from bank to bank and are generally low.

RTGS

Real Time Gross Settlement (RTGS) is the fastest inter-bank electronic fund transfer service. It is used for high-value transfers (minimum amount being Rs. 2 lakh) which require real-time settlement. The transfer is completed within 30 minutes to an hour, and the transaction status is immediately reflected in your account. RTGS charges are generally higher compared to NEFT and IMPS.

Which is Best?

Choosing the right type of electronic payment system depends on the amount you want to transfer and how quickly you want the transaction to be completed. If you want an instant transfer of funds and don’t mind small charges, IMPS is the way to go. For transfers above Rs. 2 lakh, RTGS is the best option. If you are not in a hurry and looking for low-cost transfer options, NEFT could be the choice for you.

In conclusion, IMPS, NEFT, and RTGS each have their own advantages and disadvantages. Depending on your requirement and priority, you should choose the appropriate one. It is important to check the processing time and bank charges before opting for a particular service.

Table difference between imps neft and rtgs