NEFT vs RTGS vs IMPS — Which to Use?
Understand the key differences between NEFT, RTGS, and IMPS — and choose the right transfer method for your needs.
NEFT — National Electronic Funds Transfer
NEFT settles transactions in batches throughout the day. Since December 2019, NEFT operates 24×7 on all days including weekends and holidays. Transactions are processed in half-hourly batches. There is no minimum or maximum amount limit set by RBI, though individual banks may impose limits. Charges are nominal (up to ₹2.50 per transaction for amounts up to ₹10,000). Best for non-urgent transfers of any size.
RTGS — Real Time Gross Settlement
RTGS settles each transaction individually in real time, not in batches. It operates 24×7 since December 2020. The minimum amount is ₹2 lakh; there is no maximum. RTGS is designed for high-value, time-sensitive transfers. It is the fastest settlement for large amounts. Charges are higher than NEFT.
IMPS — Immediate Payment Service
IMPS enables instant 24×7 interbank fund transfers using a mobile number and MMID or bank account number and IFSC. Transactions settle immediately. Limits vary by bank (typically up to ₹5 lakh per transaction). Charges range from ₹5 to ₹15. Best for urgent, smaller transfers at any hour.
Quick Comparison
NEFT: batch settlement, 24×7, any amount, low fees — best for general transfers. RTGS: real-time, 24×7, minimum ₹2 lakh — best for large urgent transfers. IMPS: instant, 24×7, up to ₹5 lakh, slightly higher fees — best for immediate smaller transfers. UPI: instant, 24×7, up to ₹1 lakh (or ₹2 lakh for verified apps), free — best for everyday consumer payments.
Frequently Asked Questions
Which is faster — NEFT, RTGS, or IMPS?
RTGS and IMPS settle in real time (within seconds). NEFT settles in batches every 30 minutes.
What is the minimum amount for RTGS?
The minimum amount for RTGS is ₹2 lakh. There is no maximum limit.
Are NEFT transfers free?
RBI has mandated zero charges for online NEFT transfers initiated by retail customers (since January 2020). Branch-based NEFT may still carry charges.
Can I do NEFT on a Sunday?
Yes. NEFT operates 24×7 including Sundays and bank holidays since December 2019.