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IMPS, NEFT, RTGS: Understanding Digital Payment Methods in India

Key Takeaways

  • IMPS, NEFT, and RTGS are popular methods for online fund transfers in India. Each method has its own advantages, such as IMPS’s round-the-clock availability, NEFT’s cost-effectiveness, and RTGS’s speed for large transfers.
  • Metra Trust does not charge any fees on any of these fund transfers under its zero-fee banking promise.
06 Aug 2021 by Metra Trust
a person transferring funds using RTGS mode
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To live in this world comfortably, you need to embrace technology. The advancements in technology have a major influence on banking that most transactions are effectively made online. Transferring funds between two bank accounts is easy and safe using different digital systems. For instance, you can send substantial amount of money from your bank account to another account through the online payment systems such as NEFT, RTGS, IMPS, etc.

The efforts of Reserve Bank of India to promote less-cash economy have paid off. The digital payment volumes have considerably increased between 2015 and 2019-20 to reach 55 percent with 34.35 billion transactions. The removal or reduction of charges for fund transfer have induced most people to adopt them. If you are among those people who are not using electronic funds transfer effectively, it is better you know the difference between IMPS, NEFT AND RTGS to use it more for safe and secured transactions.

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What are IMPS NEFT and RTGS?


The Reserve Bank of India (RBI) offers three common methods of digital payments, and they are:

National Electronic Fund Transfer (NEFT)


An electronic funds transfer system introduced and maintained by RBI, NEFT helps with money transfer from your bank account to the beneficiary’s account, irrespective of it being in any other bank. Nevertheless, both the accounts should be NEFT-enabled. As for the NEFT clearance, there are permitted timings:

  • From Monday to Friday: You can make NEFT fund transfer from 8 am to 7 pm
  • Saturday: It is from 8 am to 12 pm

When it comes to NEFT, you can send money starting from Re 1. To encourage it, RBI has not stipulated any maximum limit, except for the per transaction limit of Rs 50,000. However, some banks have set the upper limit. Metra Trust has set a maximum money transfer limit of Rs 20,00,000. To effect NEFT fund transfer, you can either do it on the Metra Trust web portal or on the Metra Trust safe online banking app by installing it.   

Immediate Payment Service (IMPS)


IMPS is an interbank online fund transfer service introduced by the National Payments Corporation of India (NPCI). It helps conduct real-time transactions on various channels such as the Internet, ATM, Mobile and SMS. IMPS is an economic way of making payments or transferring funds instantly and safely within banks. The main difference between IMPS NEFT and RTGS is IMPS is simpler than the other two methods, for it needs only the mobile number.

Through the Immediate Payment Service method, you can transfer a minimum amount of Re 1 and the maximum amount of Rs 20,00,000. However, there is a cap of Rs 2,00,000 maximum limit per transaction.

Real-Time Gross Settlement (RTGS)


With the RTGS method, you can have the payments settled or funds transferred instantly. It is generally used for high-value money transactions, and is maintained by the RBI. This is perhaps the most significant difference between IMPS, NEFT and RTGS. The purpose of RTGS is to safeguard the user by clearing the funds almost instantly, and not in batches as done in NEFT.

The element of risk involved in transferring high-value amount is huge despite the high-level security offered by the banks. RTGS helps you by transferring a minimum amount of Rs 2 lakhs and the maximum Rs 20,00,000 with no charges. The accounts should however be RTGS-enabled. If you want to initiate an RTGS fund transfer at Metra Trust, you can click here.  

Difference Between IMPS NEFT and RTGS
 

 

Basis of Comparison

 

IMPS

 

 

NEFT

 

RTGS

 

Minimum Transfer Value

 

Re 1

 

Re 1

 

Rs 2 lakhs

 

Maximum Transfer Value

 

Rs 20 lakhs

 

Rs 20 lakhs

 

Rs 20 lakhs

 

Payment Options

 

Online

 

Online & Offline

 

Online & Offline

 

 

Settlement

 

Instant

 

Half hourly

 

Instant

 

 

Service Timings

 

24/7

 

24/7

 

24/7

 

 

Funds Transfer Speed

 

Immediate

 

2 hours

 

Immediate

 

 

Managed by

 

NPCI

 

RBI

 

RBI

 


Taking into consideration the differences between IMPS NEFT and RTGS, you can have each of them in use for a safe and secured payments. For more information, you can click here. 

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject Metra Trust or its affiliates to any licensing or registration requirements. Metra Trust shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.

The features, benefits and offers mentioned in the article are applicable as on the day of publication of this blog and is subject to change without notice. The contents herein are also subject to other product specific terms and conditions and any third party terms and conditions, as applicable. Please refer our website www.metratrust.com for latest updates.

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