Online Fund Transfer Process: Know difference between IMPS, NEFT and RTGS (2024)

FAQs

Online Fund Transfer Process: Know difference between IMPS, NEFT and RTGS? ›

While all three systems allow for electronic funds transfer, IMPS is the fastest and most convenient for small transactions. Similarly, NEFT is suitable for low-value transactions and RTGS is ideal for high-value transactions.

The IMPS or Immediate Mobile Payment Services allows users to perform instant inter-bank money transfers on a real-time basis. Unlike NEFT and RTGS, which is at times not available on holidays, IMPS is accessible 24*7 throughout the year, even on bank holidays.

NEFT vs RTGS – A comparison

Settlement Speed: NEFT operates on a deferred settlement mode, where transactions are processed and settled in batches. The settlements take place in hourly intervals. Conversely, RTGS settles transactions in real time, meaning the funds are instantly transferred into beneficiary accounts.

What is the difference between IMPS NEFT and RTGS? IMPS and NEFT are available for use 24x7. RTGS, however, is available only during banking hours. The amount of money that can be transferred also differs across these three fund transfer methods and depends on the bank through which the transfer is being made.

To make a payment using RTGS, one requires details like name of the account holder, account number and the IFSC code of the bank. Money can be transferred from one bank account to another safely using RTGS. IFSC code is often referred to as RTGS code or NEFT code for the same reason.

IMPS allows immediate transfer of funds and this service can be accessed on bank/public holidays. That is why this service is considered better than NEFT and RTGS. How long does it take for money to get transferred online? It can take up to one or maximum two working days for money to get transferred online.

The maximum transfer limit of funds through IMPS is Rs. 5 lakh. However, it may vary from bank to bank. while the minimum limit usually is Rs.

– RTGS transfer limits

There's a minimum limit of Rs. 2 lakhs for RTGS transactions, and there's no maximum limit as such. To get an RTGS-enabled account, you can either contact your bank or check your eligibility status in your online banking portal.

This means that funds transferred through NEFT may take a little longer to reflect in the beneficiary's account than those transferred through RTGS. However, NEFT is much more affordable than RTGS. Answer.

A higher charge is incurred in the case of RTGS payments. There are specific limits to the amounts that can be transferred through this system at once. Also, the customer cannot trace the transaction – only a positive confirmation is received by the remitting bank regarding the fund transfer from the RBI.

Which is safe IMPS or RTGS? ›

If you need to transfer a large sum of money urgently, RTGS would be the best option. If you want to transfer money quickly and don't need an immediate transfer, NEFT can be a good choice. If you want to transfer money instantly, including during holidays, IMPS is the way to go.

While NEFT has no minimum or maximum limit on the amount to be transferred, RTGS transactions can only be performed if the amount to be transferred is equal to or more than Rs. 2 lakh. Similarly, NEFT transactions take around 2 hours to be processed, while RTGS transactions are processed immediately.

If you have access to internet banking or mobile banking, log in to your account and navigate to the transaction history section. Look for the specific IMPS transaction in question and locate the sender details associated with it. The sender's name and/or account number will be displayed in the transaction details.

Transactions processed through RTGS are settled on a real-time basis, as opposed to the deferred net settlement used in the National Electronic Funds Transfer (NEFT) system. RTGS is considered to be more secure and reliable than other EFT systems, as it minimizes the risk of fraud and errors.

RTGS is a domestic system, whereas SWIFT is an international system. RTGS is used to process payments within the same country, whereas SWIFT is used to process payments between different countries. Another difference is that RTGS payments are processed in real-time, while SWIFT payments are processed in batches.

To remit funds to the Inter Bank Payee through RTGS / NEFT select the 'Inter Bank Transfer' link in the 'Payments/Transfers' tab. Select the Transaction Type - RTGS or NEFT. The list of beneficiary accounts added is displayed. Enter the Amount and select the beneficiary to be credited from the list.

A Unique Transaction Reference Number, commonly known as a UTR number, means a 16-digit (for NEFT) and 22-character (for RTGS) unique code assigned to every transaction executed under the National Electronic Funds Transfer (NEFT) or Real Time Gross Settlement (RTGS) systems.

RTGS is the fastest possible interbank money transfer facility available through secure banking channels in India. NEFT- National Electronic Fund Transfer - This system of fund transfer operates on a Deferred Net Settlement basis.

An example of a real-time gross settlement system would be when a customer has their bank send a transfer of funds to another bank via the RTGS and the transfer happens instantaneously. If this transfer was done via automated clearing house (ACH), the transfer may take a few days to clear.

IMPS enables customers to send money immediately between bank accounts by using MMID (Mobile Money Identifier) and mobile numbers. On the other hand, UPI is a more advanced system that enables seamless and real-time fund transfers through a single mobile application, eliminating the need for multiple banking apps.