NEFT, RTGS & IMPS: How to choose the best mode to transfer money

Over time the way people can transfer money online has been changing. There are various ways in which one can transfer money online including the National Electronic Fund Transfer (NEFT), Real Time Gross Settlement (RTGS) and Immediate Payment Services (IMPS), among others.

 

Different Methods to Transfer Fund Online

The three different methods by which money can be transferred online are mentioned below:

• Immediate Payment Service (IMPS)
• National Electronic Funds Transfer (NEFT)
• Real-Time Gross Settlement (RTGS).

 

NEFT (National Electronic Funds Transfer)

With NEFT, you can transfer any amount to the recipient’s account in a one-on-one transfer basis. NEFT transactions don’t have a maximum limit for funds that can be transferred in a single day.

– NEFT transfer timings

The NEFT system is available round the clock throughout the year on all days (24x7x365). Funds are transferred in batches that are settled in 48 half-hourly time slots throughout the day.

– NEFT transfer limits

There is no maximum or minimum limit on the amount of funds that could be transferred through NEFT. With NEFT, you can initiate transactions to transfer funds from one bank account to another throughout India. However, you must make sure that the banks are a part of the NEFT transfer network (another way to say this is that the banks should be NEFT-enabled).

– How to do NEFT transfer

To transfer funds via NEFT, all you have to do is log in to your net banking portal and add the recipient as a beneficiary. You’ll need to enter details like their name, account number, account type and IFSC code under the Add New Payee section. Once you choose NEFT as the preferred mode of transfer and enter the amount to be transferred, the fund transfer will be completed.

 

RTGS: In case of RTGS, one can transfer a minimum of ₹2 lakh at a time. The transfers are continuous, on a transaction-by-transaction basis. There is no limit on the amount one can transfer.

UPI: As per National Payments Corporation of India (NPCI) norms, the upper limit per UPI transaction is Rs.1 Lakh. Most banks cap the daily transaction limit via UPI at the same amount, so even if you are making multiple transactions, you may not be able to exceed transferring more than ₹1 lakh per day. Also, some banks may have lower individual transaction limits, daily transaction limits, or both.

“There are two primary differences between UPI, NEFT, and RTGS. The first is the amount of money you can transfer at a time. Typically, most banks allow NEFT and RTGS transfers of up to Rs2 -10 lakh. Some banks may waive off an upper limit for RTGS entirely, while others may allow customers to set their specific third-party transfer limits for anything between Rs25 lakh to Rs2 crore via internet banking,” said Adhil Shetty,CEO, Bankbazaar.com.

 

IMPS

The transfer of funds is completed immediately via IMPS. You can transfer money 24×7 by using this method. IMPS can be completed by using internet banking or mobile banking. Various digital banks in India use IMPS services to transfer money. Depending on the bank, the transaction charges may vary.

 

Differences between NEFT, IMPS, and RTGS