NEFT vs RTGS vs IMPS: Complete Guide to Electronic Fund Transfers
Understand the differences between NEFT, RTGS, and IMPS to choose the right transfer method for your needs
Quick Comparison Table
Compare transfer methods at a glance
| Feature | NEFT | RTGS | IMPS |
|---|---|---|---|
| Full Form | National Electronic Funds Transfer | Real Time Gross Settlement | Immediate Payment Service |
| Transfer Speed | Within 2 hours | 30 minutes | Instant |
| Minimum Amount | ₹1 | ₹2,00,000 | ₹1 |
| Maximum Amount | No limit | No limit | ₹5,00,000 per day |
| Availability | 24×7×365 | 24×7×365 | 24×7×365 |
| Settlement | Batch processing | Real-time, individual | Real-time |
| Best For | Regular transfers, any amount | Large urgent payments | Instant small transfers |
| Charges | Free (most banks) | ₹25-₹50 | ₹5-₹25 |
NEFT
National Electronic Funds Transfer
Key Features:
- Transfers complete within 2 hours
- No minimum amount - start from ₹1
- No maximum limit
- Available 24×7 including holidays
- Usually free of charge
Best Used For:
Regular bill payments, vendor payments, salary transfers, and any non-urgent transactions
RTGS
Real Time Gross Settlement
Key Features:
- Real-time transfer (within 30 min)
- Minimum amount: ₹2 lakhs
- No maximum limit
- Available 24×7 including holidays
- Charges: ₹25-₹50 per transaction
Best Used For:
Large property payments, urgent high-value business transactions, loan repayments over ₹2 lakhs
IMPS
Immediate Payment Service
Key Features:
- Instant transfer (within seconds)
- No minimum amount - start from ₹1
- Maximum: ₹5 lakhs per day
- Available 24×7×365
- Charges: ₹5-₹25 per transaction
Best Used For:
Emergency transfers, instant payments, peer-to-peer transfers, small urgent transactions
How to Choose the Right Transfer Method?
Choose NEFT When:
- ✓ Transfer amount is less than ₹2 lakhs
- ✓ Transaction is not time-sensitive
- ✓ You want to avoid transaction charges
- ✓ Making regular payments like bills or EMIs
Choose RTGS When:
- ✓ Transfer amount exceeds ₹2 lakhs
- ✓ Need urgent high-value transfer
- ✓ Making property or vehicle payments
- ✓ Large business transactions
Choose IMPS When:
- ✓ Need instant money transfer
- ✓ Emergency situations
- ✓ Amount is within ₹5 lakhs
- ✓ Transferring during bank holidays or weekends
What You Need for Transfer
For All Methods:
- • Beneficiary account number
- • Beneficiary name
- • IFSC code of beneficiary bank
- • Transfer amount
- • Your net banking/mobile banking access
Additional for RTGS:
- • Minimum ₹2 lakhs balance
- • Transaction charges
- • Verified beneficiary (for first time)
Additional for IMPS:
- • MMID (for mobile transfer)
- • Or account number + IFSC
- • Activated IMPS service
Common Questions
Are NEFT transfers free?
Yes, as per RBI guidelines, most banks do not charge for NEFT transactions. However, check with your specific bank.
Can I cancel a transfer after initiating?
RTGS and IMPS cannot be cancelled as they're real-time. NEFT may be cancelled if processed before the batch settlement.
What if I enter wrong IFSC code?
The transaction will fail if the IFSC code doesn't exist. If it's a valid but wrong code, money will go to the wrong branch.
Are these methods safe?
Yes, all three are highly secure methods regulated by RBI with multiple security layers including OTP verification.