What is the difference between NEFT, RTGS and IMPS? Now India is slowly becoming digital, why should the Banking Sector be left behind. If you do not know what is Digital India then you can read from here.
Banking is also used nowadays sitting at home. You can also do some services like NEFT, RTGS and IMPS from your mobile. Now they are not days when people Banks had to stand in long queues just need a little work.
From the outside, it was as if there was no bank where people came to visit. You can still do this, but I do not see any reason to waste your valuable time here when you can easily do your work from your room, office or from any place where there is an internet connection.
Through the net banking facility of your bank, you can avail many banking services even while sleeping on your bed. Whether it is a bill for your credit cards, or an application for personal loan. For this you do not need to go out of your house.
Modern or modern banking solutions such as Real Time Gross Settlement (RTGS), National Electronic Funds Transfer (NEFT), and Immediate Payment Service (IMPS) have greatly simplified the payment process.
The amount of praise we give for such services will be less because it helps us in making transactions quicker, easier and safer.
There will be many of you who will use these services, but do you have any information about the difference between all these services?
If not, today you will get full information about this topic. So let’s start without delay and know what is the difference between NEFT, RTGS and IMPS.
Different ways to transfer money
Almost all individuals or people use one or more online money transfer modes during their lifetime .
With the help of modern technology-based banking, all people are now taking full advantage of this technology.
With the help of online banking , now they are also able to do all these things sitting at home .
When it comes to the transfer of money from one account to another, then most of the banks are managing a lot of options, which is based on many reasons such as customer requirement.
As of now, banks are managing many such transfer methods such as National Electronic Funds Transfer (NEFT), Real Time Gross Settlement (RTGS), Immediate Payment Service (IMPS), etc.
Different aspects like value of the transaction, speed of transfer, availability of service, and other factors depends on which people should use.
All these transfers give you different types of features and flexibility. Since all these modes have their own advantages and disadvantages, they provide flexibility and convenience to the customers.
Along with this, many banks have their own digital wallets that manage additional methods to do online fund transfers.
What is the difference between NEFT, RTGS and IMPS
Here the table is illustrated below, there you can find the difference about these three –
|What is the minimum transfer value||Rs.1||Rs.2 lakh||Rs.1|
|What is the maximum transfer value||No limit (no limit)||Rs.10 lakh||Rs.2 lakh|
|Type of settlement||Batches||One-on-one settlement||One-on-one settlement|
|Speed of settlement||2 hours (depending on cut-off timings and batches)||Immediately||Immediately|
|Service availability||Weekdays में : 12 batches between 8:00 a.m. – 6:30 p.m. Saturday: 6 batches between 8:00 a.m. 1:00 p.m. Sunday और bank holidays: Unavailable||Weekdays: 8:00 a.m. – 4:00 p.m Saturdays: 9:00 a.m. – 4:30 p.m Sunday और bank holidays: Unavailable||24/7|
|Transaction fee||Up to Rs.10000 – Rs.2.50 Rs.10000 – Rs.1 lakh – Rs.5 From Rs.1 lakh up to Rs.2 lakh – Rs.15 From Rs.2 lakh up to Rs.5 lakh – Rs.25 From Rs.5 lakh up to Rs.10 lakh – Rs.50||Between Rs.2 lakh – Rs.5 lakh – Rs.25 From Rs.5 lakh up to Rs.10 lakh – Rs.50||Up to Rs.10000 – Rs.2.5 From Rs.10000 – Rs.100000 – Rs.5 From Rs.100000 up to Rs.200000 – Rs.15|
How to transfer money in India
As of now, Indians (Indians) have many such fund transfer methods. Due to the use of latest technology and the demand for online-based service, no such aspect is left now which is left to be seen.
Everyone from banking and financial institutions to governing bodies, and private businesses are making full use of the latest technology, which has completely reduced the distance between customer, partners and vendors.
The way the number of online users in India is increasing, it cannot be denied that more and more people prefer to transact digitally, to send money online.
Online fund transfers are not only fast, efficient, and convenient, but with them they can be easily used for accounting and documentation purposes as well.
Online transfers are much better than other manual methods, in terms of reliability and cost factor.
If you want, you can use any system, be it NEFT, RTGS, or IMPS, any of them, these all work according to robust fund transfer methods and which allow to transfer money to individuals and businesses.
Anywhere and at any time throughout the world. Now most banks are providing Net Banking facility to their customers.
A computer or a smartphone that has internet facility, a bank account holder can access any online banking services by accessing the fund transfer section, which are managed by the bank, they do not need to go to a physical bank.
Types of Fund Transfer
If seen, there are many such systems for transferring funds online such as digital wallets, UPI, etc. But out of these NEFT, RTGS, and IMPS are very common and they are used most.
If someone is initiate to transfer the fund, then the person who is transferring the money, also called originator or remitter or Sender, should have the basic account details of the beneficiary.
Details such as account number, beneficiary’s name, account number, IFSC, and branch name etc.
All this information is very important for any transfer methods. It depends on the originator which ensures that all the information given for fund transfer is correct or not.
Before understanding any fund transfer methods and before knowing the differences between them, it is important to first learn the basic factors between these payment systems.
These important factors distinguish these online fund transfer methods into different parameters –
1. Fund Value – Your fund value is very important to decide which transfer methods to use with cones. The value of your fund determines which transfer method you use.
With this, if you add a new beneficiary then only a limited amount of fund will be allowed to transfer. So if you are new to the world of online transferring funds then it would be best that you consult your bank to transfer funds.
2. Timings (service availability) – There are some methods of fund transfer that allow the user 24/7 , for online transfers, some allow only in specified timings.
Therefore, before transferring funds, it is very important that you know about the timings of these funds, whichever fund transfer method you are using. Because some funds transfer methods cannot be used during holidays.
3. Fund Settlement Speed – It has been found from the public that people pay more attention to settlement speed factor after fund value. All fund transfer methods have different speed of fund settlement speed.
Fund settlement speed indicates how long it takes for any fund to settle or reach the benificiary’s account once it has been initiate.
In most cases people choose transfer methods after looking at transaction speed, but one thing to be noted here is that the higher your settlement speed, the more you may have to pay additional charges.
4. According to the Charges – Reserve Bank of India ( RBI ), banks decide how much transaction charges will be levied for the fund transfer methods from the con.
These charges are determined on top of some things like total value of the fund, settlement speed, and other features / flexibility provided by the bank. With this, the government also imposes a service charge on the fund transfer transaction.
Both originators and beneficiaries are advised to get the latest list of transaction fees from the website of your bank’s website and also know how much charges are charged for online transfers. Because different banks have different charges.
5. Transaction Limits – On the basis of a safe banking features and healthy practices, all banking and financial institutions set transaction limits on most of their banking and financial products.
RBI regulates all these transaction limits and along with it maintains the facts of second fund transfer through the Board for Regulation and Supervision of Payment and Settlement Systems (BPSS).
BPSS is a subcommittee in the Central Board of RBI and has been specially designed to decide and regulate all the policies of payment systems in India or India.
With this, BPSS also supervises payment and settlement systems. All payment and settlement systems payment and Settlement Systems Act, 2007 in India (PSS Act).
Since many such factors are involved in transfer of funds, but these were some very important and basic factors that differentiate one transfer method from another.
In such a situation, all factors have a direct impact on the transfer methods, this makes us easy to understand what are the differences between the available transfer options.
What is the difference between NEFT, RTGS and IMPS
Customer’s eligibility and level of access that a bank grants is very important for doing online transfer methods.
With this, the fund value limit, timings, settlement speed, and other factors depend for these online fund transfer method, this tells the customer what transfer method they should choose.
In the present era, NEFT, RTGS, and IMPS are the most popular methods for transferring funds in India, along with this, I am going to tell you about some notable differences which will help you understand them a lot.
OIL –According to this method, funds are transferred through transfer batches (which are based on Deferred Net Settlement (DNS)) and at certain specific times of the day.
If the fund transfer is initiate after the cut-off time, then it will be settled on the nex
t working day. As of now, the fund transfer requests of NEFT are made in Saturdays from 8 am to 7 pm in twelve batches in weekdays and 8 am to 1 pm in six batches.
NEFT facility is not available on Sundays and bank holidays. One very big advantage is the cost-effectiveness of NEFT,
where an individual who wants to do small value transfers does not have to worry much about the transaction fee and service charges.
Because with a small fees they can easily transfer their payment through NEFT.
Under NEFT, transactions are easily initiate and settled. One bank account from any particular bank to another bank’s account anywhere in India has to pay only standard charges without any additional cost,
With this it is necessary that both NEFT transfer network (NEFT-enabled) must be enabled in banks. With this, fund transfer can be done here only after adding Beneficiary.
RTGS – Fund transfers can be done from Rs.2 lakh to Rs.10 lakh by this type of transfer methods, but its biggest advantage is that RTGS is the fastest / real-time settlement mode.
As the sender’s account debits, the funds reach the receiver’s account. But RTGS facility should be enabled in both banks for this facility. If seen, often this facility is available in all banks RTGS transfer network which is falicitate by RBI.
With this, it is advised that individuals should be in direct contact with their bank and refer to their online banking section with it so that they can discover whether they are eligible for this RTGS payment system.
The transaction fee of RTGS is higher than other methods.
RTGS has a limit of minimum and maximum fund value, but it is a very efficient means of transferring high value funds to those who have to transfer their funds soon. Efficiency, speed, and reliability factors are some of the factors that make RTGS a very popular online fund transfers medium.
IMPS – This is the most popular and fastest methods for fund transfer, so IMPS is widely used in most banks. Whereas the other fund transfer method is closed during bank holidays and off working hours, IMPS is continuously working 24/7,
So that you can do fund transfer any time of day. Like NEFT, you can transfer low value funds in IMPS as well, but in this you can immediately settle the funds, which makes it unique.
From a glance, IMPS works like a combined version of NEFT and RTGS where the sender does not have to worry about the size and service availability of the fund and with this your funds get transferred very soon.
IMPS facility is provided only in internet and online banking services. Some banks probably offer it to mobile banking users on the basis of SMS-based IMPS service.
Many digital wallets in India use IMPS services to send money from an individual account to his bank account. Even though IMPS provides immediate fund settlement facility, its transaction fees are also less like NEFT.
Some important things that should be taken care of before Initiate Fund Transfer
Here I will provide you information on some important topics that you have to do before initiate fund transfer.
1. Timings – Timings of all fund transfer methods vary according to banks. Since NEFT and RTGS are largely based on the operation of bank’s hours, their location and specific working hours.
2. GST – GST is also applicable on transaction fee as per the latest norms which keep changing.
3. Transaction fee – A fee is also charged to initiate transfer and not to receive funds.
4. Transfer network – Here the remitter (sender) has to check whether the beneficiary’s account is eligible to receive funds or not. Because to receive the fund, they have to be a part of the transfer network.
I sincerely hope that I have given you complete information about the difference between NEFT, RTGS and IMPS and I hope you have understood about NEFT, RTGS and IMPS . I request all of you readers that you too should share this information in your neighborhood, relatives and friends, so that our awareness will be there and it will benefit everyone. I need your support so that I can convey more new information to you. How did you like this article