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NEFT vs RTGS vs IMPS: How Should You Transfer Money Online?

The world is moving to the internet to accomplish various tasks. One of them is money transfer. People usually had to go to their banks or a third-party to transfer money to someone sitting far away. However, the pace at which technology continues to grow has other benefits too. One of them is the fact that you can sit in the comfort of your home and send money to anyone sitting anywhere. You can do so by using three different ways – NEFT, RTGS and IMPS. However, what makes them different? Also, which method should you choose? Here’s our NEFT vs RTGS vs IMPS comparison.

Online Money Transfer


Money Transfer Limit

NEFT or National Electronic Fund Transfer allows you to transfer any amount of money in a go. After all, it is a simple electronic money transfer scheme. Under RTGS or Real Time Gross Settlement, you need to transfer at least Rs 2 lakh. However, there is no limit on how big an amount you can send. In case of IMPS or Immediate Payment Service helps you send money to whoever you need to immediately. Different banks have different set of requirement regarding these services and different charges too. So, keeping an eye out for such requirements will always be a good idea.

Money Transfer Duration

In NEFT’s case, the money transfer takes place in batches of one hour. Still, its speed is not as fast as that of RTGS. How so? An RTGS money transfer happens on a real-time and gross basis. Since it is real-time, money transfer takes place the fastest in this method. The transaction’s settlement takes place immediately after their processing, making it the fastest means to transfer money. IMPS may not be the fastest service to send money, but it works all the time. It works 24×7, on public holidays, bank holidays and even RBI holidays.

Also Read: Transfer Money To US Online


Usually, NEFT and RTGS attract usage charges. However, certain banks also charge some fee for IMPS. However, charges for outward transactions are levied on users. This means that you can receive money free of cost but will have to pay a fee when sending money to someone else. Though IMPS is generally offered as a free service, some banks may charge a nominal fee towards its use.

NEFT vs RTGS vs IMPS – Conclusion

While all three way of money transfer are great in their own right, which one you should choose depends on your use. If you have to transfer small amounts, prefer IMPS and NEFT over RTGS. For those with time constraints, using IMPS is better than any other way. For transfer of big amounts, RTGS is the safe bet. This NEFT vs RTGS vs IMPS comparison is to help you understand the ways in which you can transfer money online without hassle.

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About the Author: Praveen Unnikrishnan

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