Which Is Better: NEFT or RTGS or IMPS?

There it is.

The dreaded banking terms. 

The full form of which nobody questions or answers.  

But the fin-tech side of you brought you here- in search of these three different payment methods – NEFT, RTGS, and IMPS. 

So the devil lies in the details. 

As you would already know, transferring money in all these three modes is super smooth and quick

Which then, is the best payment mode- NEFT or RTGS or IMPS? 

Let’s find out! 


The full form of NEFT is National Electronic Funds Transfer. NEFT helps you transfer any amount at any point in time without a maximum limit of transaction value per day. 


  • No minimum or maximum amount should be compulsorily transferred. 
  • Only those accounts under the NEFT network in India are included. 
  • You can transfer money in slots that are settled every 30 minutes (or 48 half-hourly bases) throughout the day. 
  • Can transfer money from any bank branch to any other of the recipients. 

NEFT process 

  • Log in to the net banking account 
  • Enter details including the account number, name, and IFSC code of the recipient under the beneficiary category. 
  • Transfer funds using NEFT as the preferred payment method.


  • Transfers do not take place on a real-time basis. So NEFT takes a longer time for transactions compared to IMPS transfers. 
  • No extra charges are applied for online NEFT transactions using net banking. If you visit a bank and choose to do an NEFT transfer, transfer charges will be levied. 
  • If money is transferred during non-banking hours (at night ) for amounts above 10L, it will be received only on the next working day. 
  • No minimum amount mandated to make the transfer.  
  • The maximum amount of INR 50,000 at bank branches. 
  • However, you can conduct an unlimited number of transactions you can make.
  • Transaction cost through NEFT done ONLINE is 0. If you visit a bank branch, you will be charged. 

Timings Restriction: Monday to Friday (8 am to 7 pm), Saturday: It is from 8 am to 12 pm


RTGS full form is Real Time Gross Settlement.  If you need to transfer really large sums of money, then RTGS is your best choice. 


The transaction speed is lightning fast as the transfer takes place in real time (which is not the case in NEFT). 

  • RTGS is available round the clock with the only exception during the start and end of the day timing. Don’t worry since the timing will be broadcast by the RTGS system. 
  • You can only transfer amounts above 2L. The minimum amount allowed to be transferred is 2L. Maximum amount restriction can differ from bank to bank.  
  • Contact your bank or check online – to check your eligibility and to open an RTGS-enabled account.  
  • Both sender and receiver need to have RTGS-enabled accounts.
  • RTGS is usually preferred by businesses, corporations, and others. 
  • As per RBI, there is no upper cap on the RTGS transfer- The upper limit is only set by the bank e.g.: it may be 10L/day as per bank A or 10 Cr/day as per bank B. 

RTGS process 

  • Very similar to NEFT transfers, RTGS online transfers are free but come with extra charges when done physically through a bank branch. 
  • RTGS occurs via InterBank Transfer Scheme (IBTS) under RBI which makes all such transactions irreversible and final. 


RTGS works 24*7, round the year including on bank holidays and Sundays.

  • An RTGS transaction done during non-banking hours will be credited only on the next working day if the amount is above 10L. 
  • Rs 20,00,000 is the maximum transfer amount which is subjective and may change according to individual bank rules. 

RTGS- large amount to be transferred for immediate clearing – use RTGS


The full form of IMPS is Immediate Payment Service.


  • Real-time Payment method 
  • 24/7 – even on bank holidays 
  • Suitable for transfer of lower amounts – up to 2L comparatively 
  • IMPS has the best aspect of both RTGS and NEFT. ANYTIME any amount anywhere – transfer limitations are not there instantly. 
  • IMPS is an online transfer with a few banks offering SMS payment methods. You can transfer via SMS as well. Depends on the bank. 
  • IMPS allows transfers via prepaid payment instruments as well as through banks. 

Experts say: PPIS allows you to buy goods or initiate transactions using the value stored in PPI. eg: voucher cards,  digital wallets, smart cards, IMPS transfers possible for those without a bank account 

IMPS process 

The process is a bit more elaborate with IMPS

  • Register for mobile banking services to generate a mobile money identifier MMID PIN or a Mobile PIN. 
  • Next, ensure the recipient also has MMID to make a successful transaction. 
  • Log in to the net banking platform 

Once you’ve registered, log in to your net banking portal and select IMPS as the preferred mode of transfer. Then you should fill in details like the recipient’s mobile number, the recipient’s MMID, the amount to be transferred, and your MPIN. Once this is done, you will receive a confirmation message via SMS


  • NEFT and RTGS take more time. 
  • IMPS is real-time and assures you of real-time fund transfers. 
  • Available round the clock 24/7,365 days a year. 
  • The fund transfer from your account to your supplier’s account through IMPS  is done in a fraction of a second. All you need to do is input the account number along with the IFSC code of the beneficiary to complete the transaction.

The minimum limit for transactions through IMPS fund transfers is one rupee whereas the maximum amount is capped at Rs. two lakhs. That is the reason why retail customers across India prefer this fund transfer method over other systems even for a small-value transaction.

There are charges for transactions through IMPS. It varies from bank to bank.

Advantages of Online Money Transfer

  • Fast, Reliable, and Convenient 
  • The automated process leaves a digital trail that helps you track lost invoices 
  • Does not require wasting time at bank branches in long queues. 
  • Gain flexibility in several transfers, multiple vendor transfers, etc 

Which is best for you? 

This depends on the reason for transferring money. For example, if you want to transfer money immediately for any emergency or financial needs, then IMPS is best suited as you can transfer money instantly. For transferring money in small amounts NEFT is the best available option but it takes some time to reach the person concerned. RTGS is useful only for large amounts of transfers. 

Final Word

With the debate on IMPS vs. NEFT vs RTGS, you may actually forget that choosing the right platform to make these transactions is more important than the method of payment itself. 

Choosing the right fintech services will enable you to be entitled to an immediate invoicing facility for each transaction. 

For all B2B transactions, you can choose NEFT, RTGS, or IMPS as your preferred method of payment and simply click! 

So choose wisely! 


Q1. Difference between UPI and NEFT/RTGS/IMPS? 

Ans: Imps neft, rtgs charges differ widely. The amount of money to transfer varies. The maximum transfer limit is 1L per day for UPI transactions. NEFT and RTGS transfers allow over 2L – 10L. 

Q2. Is GST tax applicable for NEFT/RTGS transactions?

Only if you visit a bank branch and initiate an NEFT/RTGS transaction will GST be applicable. No charges are applicable for online transfers. 

Q3. What is the upper limit for transfers done through NEFT?

No limitations are placed unless done so by a bank. Usually, it is  Rs 50,000 per transaction through NEFT.

Q4. Are Fintech companies allowed to do NEFT transfers?

Absolutely yes. 

Q5. How much time does it take for beneficiary addition for RTGS?

Up to 24 hours is the standard time it takes for beneficiary addition under RTGS. (Instant Beneficiary addition with Karbon Business).

Q6. In IMPS, NEFT, and RTGS, which have the fastest transaction process?

IMPS has the fastest transaction process among NEFT, RTGS, and IMPS.

Q7. How many times can NEFT transactions be done in a day?

NEFT transactions can be made any time of the day between 8 a.m. to 6:30 p.m. There is no limit to the number of NEFT transactions in a day.

Author Bio

Ramitha Ramesh serves as the editor at Karbon Business, a fintech company specializing in offering corporate credit card solutions. She is renowned for her expertise in SEO content marketing strategy for a diverse clientele across the US, UK, and India. With a penchant for exploring the fast-paced realm of finance, business, and marketing, her blog is a treasure trove of insights that offer unique perspectives on the latest trends and developments in the industry. Finding nirvana in food, fun and travel, she is on a mission to counter the infodemic amidst digital chaos.

LinkedIn Link: