Home > Finance > Know how to choose between NEFT, RTGS, IMPS

Know how to choose between NEFT, RTGS, IMPS


NEW DELHI: 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.

Let’s have a look at the features of all these methods:

NEFT: NEFT is available 24*7. However, the transfer in case of NEFT happens in batches of half an hour. There is no maximum limit on the amount that one can transfer through NEFT, but different banks have different limits on the amount that can be transferred.

In order to transfer money through NEFT a person needs to mention the IFSC code,the name of the beneficiary, the name and bank account number of the person to whom money needs to be transferred.

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.

“The second difference is the time taken. The UPI is instantaneous, and the transfer happens in a few seconds. RTGS takes longer at times as much as half an hour. NEFT, on the other hand, is processed in batches. So the time taken to process the transfer may be longer. Decide on the payment depending on the transaction amount,” said Shetty.

(Do you have a personal finance query? Send in your queries at [email protected] and get them answered by industry experts.)

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