Understanding Digital Payments: NEFT, RTGS & IMPS

When transferring money to another bank account in India, an IFSC code is mandatory. However, you also have to choose the method of transfer: NEFT, RTGS, or IMPS. Here is how they differ.

1. NEFT (National Electronic Funds Transfer)

NEFT operates in half-hourly batches. When you initiate a transfer, it joins a queue and is processed in the next available batch.

• Minimum Transfer: ₹1
• Maximum Limit: No upper limit (though banks may have their own online limits).
• Speed: Usually takes 30 minutes to 2 hours. Available 24x7.

2. RTGS (Real Time Gross Settlement)

RTGS is meant for high-value transactions. The settlement happens in "real-time" and on a "gross" basis (individually, not in batches).

• Minimum Transfer: ₹2,00,000
• Maximum Limit: No upper limit.
• Speed: Instantaneous. Available 24x7.

3. IMPS (Immediate Payment Service)

Managed by NPCI, IMPS is designed for instant, lower-value transfers using mobile phones or net banking.

• Minimum Transfer: ₹1
• Maximum Limit: ₹5,00,000 (recently updated by RBI).
• Speed: Instant. Available 24x7, 365 days a year.