IMPS VS NEFT VS RTGS – What is the Difference

As the title suggests, todays’ article is all about getting a brief understanding of three major online payment transaction methods. Technology has no doubt brought a revolution in the entire banking sector and the innovative digital banking is the boon of technology to us and this segment is only expanding. So, today we shall discuss the meaning of IMPS, NEFT, RTGS, their major attributes, their differences, their applications, their drawbacks, and conclusion. Therefore, just stay tuned till the end of this very simple article.

First of all let us get a brief understanding of the three online payment modes:

IMPS VS NEFT VS RTGS What is the Difference


It was launched by NPCI (National Payments Corporation of India), which is a Government of India institute. You can transfer money via this mode on all the days including bank holidays. Let us now highlight some of its salient characteristics:

  1. It stands for Immediate Mobile Payment Services (IMPS).
  2. The minimum amount that you can transfer using this method is one rupee.
  3. The maximum amount limit here is five lakh rupees which was two lakh rupees earlier.
  4. It is completely a digital payment platform. 
  5. It is a real time transfer method, this means that the funds are transferred at that moment only.
  6. You have to pay some charges while using this method of payment for fund transfer and those charges are decided by the individual banks where you have your account.



It was launched by the central bank of India – RBI (Reserve Bank of India), an autonomous body under the government of India. Let us go through some of its major features:

  1. It stands for National Electronics Fund Transfer (NEFT).
  2. The minimum amount that you can transfer using this method is one rupee.
  3. It has no maximum amount limit.
  4. It is available both in digital and offline modes.
  5. It is not a real time transfer method, rather half hour time slots are formed here and your payment is settled in that time slot only.
  6. This payment method is free and you need not pay any charges for your transactions.



It was also launched by the Reserve Bank of India (RBI), and this method is popular and most used for transferring big amounts. Let us have a glimpse of some of its main attributes:

  1. It stands for Real Time Gross Settlement (RTGS).
  2. The minimum transaction value is two lakh rupees here.
  3. It has no maximum limit.
  4. It is available in both online and offline modes.
  5. It is a real time transfer method, and your funds are transferred at the time of transfer only.
  6. This mode of payment is free and you do not have to pay any charge or fee for it.


As we have got a clear understanding of the meaning, attributes, differences of these three modes of digital payment, now let us try to explore some more details of the same. You might be thinking how can we start using these services? Well, for that, first of all you must have a bank account and all your kyc details registered there.

Now, let us get an insight of how we can transfer funds using all the three methods:



First of all, you must login into the net banking portal of your bank. Once the page loads, you must add the relevant credentials of the person whom you want to send funds via this method, like – account holder name, bank account number, IFSC code, account type, etc. and then add it as beneficiary. Now, simply choose NEFT as your payment mode and then proceed further with your transaction.



The process is quite similar to the NEFT, you just need to choose the payment mode as RTGS instead of NEFT for transferring your money via this method.



One of the most favourite digital fund transfer methods, do you want to start using it? Well, it is quite simple, the first thing you need to do is get yourself registered for the mobile banking services from your bank branch. Once it is done, you need to generate your MMID (Mobile Money Identifier) and a secret MPIN for initiating fund transfer via this method. Now, when you are ready with all your stuff, simply launch the net banking portal of your bank, and choose IMPS as your preferred transaction method, now, provide some crucial details of the person whom you want to transfer money, like – his/her mobile number, MMID, payment amount, and finally make this transaction by filling your MPIN.


Now, we shall have a look at some of the major pros and cons of the above-mentioned digital payment modes.



  • You no longer need to stand in the long queues of banks for hours to transfer money to someone.
  • All these methods are accepted by all major hotels, hospitals, malls, and much more, so, you need not carry a lot of cash with you all the time.
  • They are available 24*7, so, you can transfer money at any time of the day or night.
  • All these methods are quick, with RTGS and IMPS being fastest.
  • The minimum transfer amount limit for both IMPS and NEFT is very less and feasible for almost everyone, so it brings the financially poor and the neglected sector closer to digital banking.
  • There is no charge or fee imposed while you make transactions via NEFT and RTGS modes.
  • If your transaction involves less amount, then you can prefer either IMPS or NEFT, and if your transaction involves a huge amount, then you can go ahead with RTGS, so you have a choice here.



  • Though IMPS is quite popular and trending, but, the fact that you have to pay a fee for every transaction you make through the IMPS method is quite annoying.
  • In RTGS mode of payment, you have the minimum amount limit of two lakh rupees, so, you cannot make transactions less than two lakh rupees via RTGS mode.
  • In case of NEFT, your transaction takes time to settle, as it settles payment in specific time slots.



What are IMPS, NEFT, and RTGS?

All the above-mentioned terms are the different modes of digital fund transfer. They are quite popular and famous.

Which is best amongst – IMPS, NEFT, and RTGS?

It depends from individual to individual and also in your needs, like – if your payment is small, then both IMPS and NEFT are best for you, now again comes the twist, if you want your transaction to be superfast and are ready to pay a small fee for same, then IMPS is best for you, and if your payment is small but you are not ready to pay any fee, rather you can wait for some time, then NEFT is best for you. Now, if your transaction amount is huge, then RTGS is best for you.

Are all the above-mentioned methods secure?

Yes, they are all safe and secure, as they are regulated and supervised by the entities of Government of India.

What are the cases in which my transaction can fail?

If your credentials do not match, if you do not have sufficient funds in your account, and if there is some technical and network problem, then in such cases, your transaction will fail.

What if the amount is debited from my account but the person whom I transferred is not credited?

In such cases, you need to raise a complaint from the portal, and in most cases it is due to some of the technical issues, and you need not worry, as your money will be credited back into your account within a few days.