Confused Between NEFT, RTGS & IMPS Services? See Which One Is Better

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Nowadays the electronic or wire money transfers can be done in many different ways. Electronic or e-transfer of funds can be explained as the transfer of money from one bank account to another bank account and this transaction is carried out online over a network of computers without dealing with bank staff. The online money transfer can be between different accounts of a bank or it can be between multiple banks. NEFT or National Electronic Funds Transfer, RTGS or Real Time Gross Settlement and IMPS or Immediate Payment Service are three important platforms that are used for the money transfer at the present time.

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National Electronic Funds Transfer (NEFT) is a nation-wide payment system allows the electronic transfer of funds from one bank to another bank account. According to the Reserve Bank of India (RBI), the transaction of money can be done by an individual or company to an individual or company’s bank account with any bank but the company needs to be a part of the NEFT scheme. On the official website of RBI, the information related to the bank branches currently part of the NEFT system can be accessed.

In India, mostly every bank supports NEFT payment. The important point to note is that the transactions are executed in half-hourly batches in NEFT. As mentioned on the official website of RBI, currently, there are a total number of twenty-three half-hourly settlement batches which work from 8 am to 7 pm on all working days of the week except the second and fourth Saturday of the month. Under the NEFT scheme, there is no limit on the funds that can be transferred. The maximum amount of transaction that can be made using NEFT scheme is Rs. 50,000.


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Real Time Gross Settlement(RTGS) majorly focuses on the large value money transactions. Real-time gross settlement systems are specialist funds transfer systems where the instant transfer of money or securities take place. RTGS works differently than NEFT and in this RTGS processes the instructions at the time they are received rather than at a later time. According to RBI, there are currently more than one lakh bank branches that have the facility of RTGS and the information related to these branches are available on the official website of RBI.

The transfer of money through RTGS can be made be made between 9.00 am to 4.30 pm on weekdays and from 9:00 am to 2:00 pm on Saturdays. But it should be noted that the timings of the banks may vary depending on the customer timings.

Immediate Payment Service(IMPS) is an instant real-time inter-bank electronic funds transfer system in India which is managed by the National Payments Corporation of India (NPCI). With the help of this service, one can make money transfer instantly through banks.

The important thing to note is that this service is available round the clock throughout the year and is also available on bank holidays. According to the official website of RBI, there are 53 commercial banks and 101 rural, district, urban and cooperative banks that support this service.


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