If you have ever made a digital payment from your bank account to someone else’s, you may have come across one of the following terms: IMPS, NEFT, and RTGS. These are all different methods of transferring money between bank accounts. While you may prefer UPI or Airtel Payments Bank wallet for daily money transfers, for higher-value transactions, IMPS, NEFT, and RTGS are often considered ideal.  

Now, it’s understandable to be confused between all three, especially if you haven’t used them at all. Here, we break down the differences between these online money transfer methods, so you know which option to select when transferring money from one bank account to another.  

What is IMPS? 

Immediate Payment Service, or IMPS, is a round-the-clock money transfer service that allows you to make instant payments. Whether it’s bank-to-bank transfers or merchant payments, IMPS facilitates fund transfers at any time, even on bank holidays or weekends. The only catch is that you can only pay a maximum amount of ₹5 lakhs.  

Key features of IMPS: 

• Instant transfers, even outside banking hours 
• Maximum limit of ₹5 lakhs 
• Can be done via mobile apps like Airtel Thanks app, internet banking, and ATMs 

What is NEFT? 

National Electronic Funds Transfer, or NEFT, is a payment system that allows you to transfer funds from one bank account in India to another. NEFT transactions are carried out in batches. So even though you may transfer money anytime, the receiver will only be credited when the next NEFT batch is processed. However, the good thing is that there’s no limit on the amount you can transfer. 

Key features of NEFT: 

• Transactions may take up to 2 hours to settle 
• No maximum limit 
• Can be done both online and offline 

What is RTGS? 

Real-Time Gross Settlement, or RTGS, is another fund transfer method that allows you to make high-value, instant payments from your bank account to another. Like IMPS, transactions are carried out in real time. It’s available 24/7 and was introduced by RBI to ensure there are no delays in critical payments. Although it has no maximum limit, RTGS can only be done for amounts over ₹2 lakhs.  

Key features of RTGS: 

• Instant transfers during banking hours 
• Minimum amount of ₹2 lakhs 
• Can be done both online and offline 

The Bottom Line 

The next time you have to transfer money from one bank account to another, make sure to remember the difference between IMPS, NEFT, and RTGS, so you know which option to select. For instant payments, choose IMPS. For scheduled payments, NEFT transactions work best. And for critical, high-value transactions, pick RTGS.  

FAQs 

1. Which is the best method for digital payment? 

UPI, IMPS, NEFT, and RTGS are all different payment options. The best one depends on your needs. For day-to-day transactions, UPI and IMPS are best. But for high-value transactions, choose NEFT or RTGS.  

1. For instant payments, should I choose IMPS or RTGS? 

If you are transferring less than ₹5 lakhs, you can do so via IMPS. For higher amounts, you must choose RTGS. Both transactions are carried out in real time.  

1. Are there any charges for NEFT transactions? 

Yes, for offline and outward transactions, the charges can range from ₹2.5 to ₹25.