What is the difference between NEFT and RTGS payments? - Letsdiskuss
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Meetali Asiwal

Thinker | Updated 24 Jul, 2018 |

What is the difference between NEFT and RTGS payments?

Avinash Kumar

Engineer | |Updated 21 Jul, 2018

Net banking these days has become a trend in which the transaction of money is easily acquitted.
If you are using net banking from some time, you will know about RTGS NEFT and IMPS and if you have started using net banking now, it is important for you to know these three terms. So let's know about what are the RTGS NEFT and IMPS?

RTGS, NEFT and IMPS are the separate processes of transferring money.

NEFT (National Electronic Fund Transfer) –

Fund transfer in NEFT is not done all at once. There is a system to do it in batches and there’s a batch almost every hour.

You can send money between 08:00am and 7:00pm from Monday to Friday and between 08:00am and 12:30pm on Saturdays (Except 2nd and 4th Saturday of month). The bank runs 12 batches from Monday to Friday and 06 batches on Saturdays to forward the money you send. If you transfer money till 7:00pm, the bank credits money in the account the same day, but if you transfer the money after 07:00pm, then the bank performs its execution the next day.

There is no cap on the amount of money that can be transferred. However, individual banks may set a limit. In NEFT, we can transfer money up to a maximum of 10 lakhs.

Amount charge:-
Up to 10 thousand - Rs. 2.50 (+ Applicable GST)-
From 10 thousand to 1 lakh - Rs. 05 (+ Applicable GST)
From 01 lakh to 02 lakh - Rs. 15 (+ Applicable GST)
Up to 2 lakh to 10 lakh – Rs. 25 (+ Applicable GST)

RTGS (Real Time Gross Settlement):-

Money transfer takes place in real time, meaning that if we transfer money, the amount is credited in the account immediately.

• Money transfer in RTGS can happen only if the bank is running officially.
• RTGS facility cannot be availed on Sunday and gazetted holiday, as the bank is closed on these days.
• Money transfers in RTGS are in real time. The maximum time of money transfer in this manner is 02 hours.
• In RTGS we can transfer a minimum of 2 lakh and a maximum of 10 lakhs. The maximum amount of transfer of money is different in different banks.
• You can send money from 09:00am to 4:30pm from Monday to Friday, and 09:00am to 02:00pm on Saturdays (Except 2nd and 4th Saturday of month).
Amount charge:-
2 lakh to 5 lakh - not exceeding Rs. 30.00 per transaction
Above 5 lakh – not exceeding Rs. 55.00 per transaction.

IMPS (Immediate Payment Service):-

The funding of this service is that you can transfer money to anyone and anytime with this. This also transfers money in real time. This was originally made for mobile phones.
Benefits of IMPS –

• Instant transfer.
• Available 24 x7 (functional even on holidays)
• Safe and secure, easily accessible and cost effective
• Channel Independent can be initiated from Mobile/ Internet / ATM channels
• The charges for remittance through IMPS are decided by the individual banks.

For transfer of funds from NEFT and RTGS, it is necessary to have some necessary information that means the transfer of funds to the person, the bank account number of that person, and the branch of the bank must have an IFSC address.