Digital wallets and UPI are just two of the many online money transfer options available in India. But with more and more instances of cybercrime resulting in financial losses, it’s critical to think about safer and more precise ways to transfer money through banks. Options like NEFT, RTGS, and IMPS can be especially helpful in this regard. These techniques are favored for transferring big sums of money because they provide a higher degree of security and dependability. People can make sure that their hard-earned money is safe and secure throughout the transfer process by selecting these reliable methods.
Although NEFT, RTGS, and IMPS are all equally advantageous and practical, each has a unique set of benefits and drawbacks. The beneficiary’s name and the bank’s IFSC code are essential pieces of information that the sender needs to know in order to use these online fund transfer services. While money can be transferred using all three payment methods, there are some differences between them. While the National Payments Corporation of India (NPCI) introduced IMPS, the Reserve Bank of India introduced NEFT and RTGS.
National Electronic Funds Transfer (NEFT) is a payment system that allows for one-to-one transfers of funds.
Anyone can electronically transfer funds between participating bank branches by using the NEFT payment system.
Fund transfers made through the NEFT system are settled in 23 half-hourly batches rather than in real time.
You must first add beneficiaries to the online banking portal of your required bank in order to transfer money via NEFT.
There are no transaction limits for NEFT transactions. All NEFT transactions are subject to a fee, which ranges from Rs. 2.5 to Rs. 25, depending on the amount transferred.
Real-Time Gross Settlement (RTGS) is a payment method where funds are transferred on a gross basis and credited to the beneficiary’s account instantly.
The main purpose of the RTGS system is to handle large-value transactions that need to be cleared instantly. With no upper or maximum ceiling, the minimum amount to be remitted through RTGS is ₹ 2,00,000/-.
RTGS transactions are free of additional costs and are available for both online and offline service.
RTGS services are accessible around-the-clock, and transactions can be started using internet banking from any location.
National Payment Corporation of India oversees the Immediate Mobile Payment Services (IMPS), a real-time, instantaneous interbank funds transfer system.
IMPS is available 24*7 including bank holidays.
Users can only add beneficiaries through IMPS mobile platforms by giving the recipient’s mobile number and MMID (Mobile Money Identifier).
In addition to transferring money between bank accounts, IMPS can be used to receive payments, make payments to other merchants, conduct mobile banking transactions, and more.
Consider these before initiating a fund transfer
Timing: Depending on the bank, each transfer will occur at a different time. The location and bank will determine the RTGS operating hours. Payment options like NEFT and IMPS are accessible seven days a week, around the clock.
Transaction fee: When money is transferred, there is a transaction fee. It varies from bank to bank.
GST: The transaction fee will be subject to GST in accordance with current regulations.
Network: For the transfer to take place, both banks must be a part of the scheme.
Given below are some of the important things to know when using the different methods to transfer money:
Fees for Fund Transfers: There will be fees associated with any financial transfer. The Reserve Bank of India (RBI) asserts that banks set the fees associated with various fund transfers.
Fund Settlement Speed: The fund settlement speed varies based on the kind of transfer. The fund settlement speed is the length of time needed to move money from one bank account into another.
Service Availability: The timings will change based on the kind of transfer. While RTGS is only operational during banking hours, IMPS and NEFT are available around-the-clock.
Fund Transfer Cap: The fund transfer cap is the maximum amount that can be moved. The maximum amount will vary depending on the method of payment.
Differences Between NEFT, IMPS and RTGS:
|Minimum transfer value
|Maximum transfer value
|Depends on the customer segment
|No upper limit
|Type of settlement
|Speed of settlement
|2 hours (subject to cut-off timings and batches)
|Depends on the bank
|Mode of the process
|Online and Offline
|Online and Offline
|30 minutes to 72 hours
|No charge is levied for inward transaction and online process.
|No charge is levied for inward transaction or online process.
For outward transactions: Rs.2 lakhs to Rs.5 lakhs – Up to Rs.25 plus GST Rs.5 lakh and above – Up to Rs.50 plus GST
|Charges vary from bank to bank
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