What is the difference between NEFT, RTGS, and IMPS? Now India is slowly becoming digital, why should the banking sector be left behind. If you don’t know what Digital India is, you can read from here. Banking services are used nowadays even at home.

You can also do some services like NEFT, RTGS and IMPS from your mobile phone. Now it is not the days of people that were on the banks to stand in long lines just need a little work. From the outside it looked as if this was not a bank but a temple where people came to Darshan. You can still do this but I don’t see any reason to waste your precious time when you can easily do your work from your room, office or anywhere you have internet connection.

With the net banking facility of your bank, you can avail various banking services even while sleeping on your bed. Whether it’s your credit card bills or personal loan applications. You don’t have to go out of your house for this.

Modern or state-of-the-art banking solutions such as Real-Time Gross Settlement (RTGS), National Electronic Funds Transfer (NEFT) and Instant Payment Service (IMPS) have greatly simplified the payment process. The more we value such services, the less it will be because they help us conduct transactions quickly, easily and securely.

There will be many people who will use these services, but do you have any information about the difference between all these services, if not, today you will have complete information about it. So let’s get started without delay and know the difference between NEFT, RTGS and IMPS.

Different ways to transfer money

Almost all individuals or people use one or more online money transfer modes in their life. With the help of modern technology based banking, everyone is now taking full advantage of this technology.

With the help of online banking, they can now do all these things even if they are sitting at home. When it comes to transferring money from one account to another, most banks run a lot of options that are based on many reasons such as the requirements of the customer.

As of now, banks operate various transfer methods like National Electronic Fund Transfer (NEFT), Real Time Gross Settlement (RTGS), Instant Payment Service (IMPS), etc. It depends on various aspects such as transaction value, transfer speed, service availability and other factors that people use.

All of these transfers give you different types of features and flexibility. Since all these modes have their own advantages and disadvantages, they provide flexibility and convenience to customers. Besides, many banks have their own digital wallets that provide additional ways to make money transfers online.

What is the difference between NEFT, RTGS and IMPS

Here is the table given below, where you can tell the difference between these three –

How to transfer money in India

As of now, Indians have many of these money transfer methods. Due to the use of the latest technology and the demand for online service, there is no such aspect that has not yet been seen.

From banking and financial institutions to governing bodies and private companies, everyone is taking full advantage of the latest technology, which has completely reduced the distance between customers, partners and vendors.

The way the number of online users is increasing in India, it is undeniable that more and more people prefer to transact digitally, to send money online.

Online money transfers are not only fast, efficient and convenient, but can also be easily used for accounting and documentation purposes. Compared to other manual methods, online transfers are more superior in terms of reliability and cost factor.

You can use any system if you want, be it NEFT, RTGS or IMPS, they all work with powerful money transfer methods which allow individuals and companies to transfer money anywhere and anytime around the world.

Now most of the banks offer net banking facilities to their customers. A computer or smartphone with internet, the bank account holder can access the money transfer section and use any internet banking services operated by the bank, they don’t need to go to the physical bank.

Types of money transfer

If you see, there are many such systems available for transferring money online like digital wallets, UPI, etc. But among these systems NEFT, RTGS and IMPS are very common and are used the most.

If someone initiates a money transfer, the person transferring the money who is also called the originator, sender or sender, must have the basic beneficiary account details.

Details like account number, beneficiary name, account number, IFSC number, branch name, etc. All this information is very important for any transportation methods. It depends on the originator ensuring that all the information provided for the money transfer is correct or not.

Before understanding any money transfer methods and before knowing the difference between them, it is important to first know the basic factors between these payment systems. These important factors characterize online money transfer methods in different parameters –

1.   Fund Value – The value of your money is very important for deciding which transfer methods to use. The value of your money determines which transfer method you use. With this, if you add a new beneficiary, only a limited amount of money will be allowed to transfer. So if you are new to the world of online money transfer, it is best that you consult your bank for money transfer.

2.   Appointments (Service Availability) – There are some money transfer methods that allow the user to transfer online 24/7 , while some allow only at specific times. Therefore, before making a money transfer, it is very important that you know the dates of these funds, no matter what money transfer method you use. Because you cannot use some money transfer methods during holidays.

3.   Fund settlement velocity – It has been generally found that people are more interested in the settlement velocity factor after the value of the fund. All money transfer methods have a different speed of money settlement speed.

Funds settlement speed refers to how long it takes for a fund to settle or access a beneficiary’s account once it is initiated.

In most cases, people choose transfer methods after looking at the speed of the transaction, but one thing to keep in mind here is that the faster your settlement, the more additional fees you may have to pay.

4.   Fees – According to the Reserve Bank of India ( RBI ), the banks decide how much transaction fee will be charged on the money transfer methods of any of them. This fee is based on a few things which are the total value of the fund, the speed of settlement, and other features/flexibility that the bank provides.

Besides, the government also charges a service fee on the money transfer transaction. Both originators and recipients are advised to get the latest list of transaction fees from your bank’s website as well as to know the fees for online transfers. Because different banks have different fees.

5.   Transaction limits – In terms of safe banking features and healthy practices, all banking and financial institutions place transaction limits on most of their banking and financial products.

The RBI regulates all such transaction limits and also maintains the facts of other money transfers through the Payment and Settlement Systems Regulation and Supervision Board (BPSS).

BPSS is a specially designed sub-committee of the RBI Central Board which decides and also regulates all policies of payment systems in India or India.

Besides, BPSS also oversees payment and settlement systems. The organization of all payment and settlement systems in India under the Payment and Settlement Systems Act 2007 (Act PSS).

Since many of these factors are involved in money transfer, however, these are some of the very important and fundamental factors that differentiate one method of transfer from others. In such a case, all the factors have a direct influence on the modes of transmission, which makes it easier for us to understand the differences between the available diversion options.

What is the difference between NEFT, RTGS and IMPS

To do online transfer methods, the eligibility of the customer and the level of access given by any bank is very important. Besides, the amount of funds limit, timings, settlement speed and other factors depend on the online money transfer method, so that the customer knows which transfer method to choose.

Currently, NEFT, RTGS and IMPS are the most popular methods of money transfer in India, along with this, I will tell you some notable differences that will help you a lot to understand.

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Under this method, funds are transferred in batches (based on Deferred Net Settlement (DNS)) also at certain times of the day.

If the transfer of funds is initiated after the expiry of the specified time, it will be settled on the next business day. As of now, NEFT money transfer requests are processed in twelve batches from 8am to 7pm on weekdays and in six batches from 8am to 1pm on Saturdays. NEFT is not available on Sundays and public holidays.

A huge advantage is the cost-effectiveness of NEFT, as an individual who wants to make transfers of small value does not need to worry about transaction fees and service fees. Because for a small fee, they can easily transfer their payments through NEFT. That is why NEFT is a very popular and widely used method of transferring money online.

Transactions under NEFT can be initiated and settled easily, one bank account from one particular bank to another bank account anywhere in India at no extra cost, only standard fees are to be paid, and both banks are required to have NEFT Transfer Network (NEFT Enabled). With this, the money transfer can only be done after adding the beneficiary here.

RTGS

Money transfers from Rs.2 lakh to Rs.10 lakh can be done through this type of transfer method, but the biggest advantage is that RTGS is the fastest/real time settlement mode.

When the sender’s account is debited, the funds are accessed on the recipient’s account. But for this facility, RTGS facility must be enabled in both banks. If seen, this facility is available in almost all RTGS remittance network of banks which is facilitated by RBI.

Besides, individuals are advised to be in direct contact with their bank and also refer to the internet banking department so that they can find out whether they are eligible for this RTGS payment system facility or not. RTGS transaction fees are higher than other methods.

There is a minimum and maximum amount of funds in RTGS, but it is a very effective way to transfer high-value funds that will have to transfer their funds soon. Efficiency, speed and reliability are some of the factors that make RTGS online money transfers so popular on the Internet.

IMPS

This is currently the most popular and fastest way to transfer money, so IMPS is widely used in most banks. When other money transfer methods are closed during public holidays and out of business hours, IMPS operates continuously 24/7 so you can transfer money at any time of the day.

Like NEFT, you can transfer low value money to IMPS too, but in this you can settle money instantly which makes it unique. Seen at a glance, IMPS operates as a combined version of NEFT and RTGS where the sender does not have to worry about the size and availability of the fund, so your money is transferred very soon.

The IMPS facility is only provided in Online and Online Banking. Some banks may offer this through SMS-based IMPS to mobile banking users.

Many digital wallets in India use IMPS services to send money from an individual account to his or her bank account. IMPS may provide instant funds settlement facility, but its transaction fee is lower like NEFT.

Some Important Things to Consider Before Starting a Money Transfer

Here I will provide you with information on some of the important topics that you need to do before proceeding with the money transfer.

1.   Timing – The timing of all money transfer methods varies according to the banks. Since NEFT and RTGS are highly dependent on the bank’s business hours, location and exact business hours.

2. Goods and Services Tax – Goods and Services Tax is also applicable to transaction fees according to the latest standards that are constantly changing.

3. Transaction Fee – A fee is also charged for initiating the transfer and not receiving the funds.

4.   Transfer Network – here must be converted to verify whether the account beneficiary is eligible to receive funds or not. Because they have to be part of the transfer network to receive the money.

What did you learn today

I sincerely hope to have given you complete information about what is the difference between NEFT, RTGS and IMPS and I hope you have understood something about NEFT, RTGS and IMPS .

I ask all readers that you also share this information in your neighborhood, relatives and friends, so that there is awareness among us and everyone benefits from it a lot. I need your cooperation so that I can pass on more new information to you guys.

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