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Published on:

December 29, 2025

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RTGS vs NEFT vs IMPS: Key Differences Explained

The growth of digital payments in India is being driven by increased usage of online banking and mobile applications. RTGS, NEFT and IMPS are three of the most widely used methods to send/receive money from one bank account to another electronically. Even though these three types of transactions can all be used to transfer funds electronically, each has its own set of characteristics that makes them suitable for different circumstances. Each of these methods has its own features of speed, the limit on the amount of money you can send using the service, hours of operation and purpose.

What is RTGS

RTGS, or Real-Time Gross Settlement, is mainly used to transfer large sums of money in one transaction rather than many small amounts at once or multiple transactions bundled together; each transaction is settled immediately. Because of this method of settlement (gross), most businesses and banks have confidence that their funds are being settled as safely and quickly as possible. Therefore, businesses that have an immediate need for speed, accuracy, and reliability in their transactions typically use RTGS.

The following are typical uses of RTGS:

Transfers of large dollar amounts (e.g., above $100,000)
Payments between businesses and/or corporations
Urgent settlement requirements
Situations requiring a confirmation of payment within seconds of providing it
Purchasing or selling real estate or other valuable items (e.g., vehicles)
Payments that need to clear the same business day
Business transactions (e.g., employee salaries) that require immediate payment or collection of funds

What is NEFT

National Electronic Funds Transfer (NEFT) is a method of transferring money that uses batch processing to send money across all of India. There are batches of transfers every 30 minutes each day. Once the next batch has settled, the amount requested will be credited to the beneficiary. You can transfer funds securely and bank electronically (internet banking, mobile banking, and bank branches); thus, NEFT can be used by both individuals and businesses.

When Do You Need to Use NEFT

Between banks
Established Bank Transfer Procedures
Recourse to Regular Bank Processing
Recurring Payments
Transfer money from one bank in India to another bank in India (cross-border transfers).

NEFT is very useful for secure and reliable transfers of money from bank to bank where speed is not critical but your need for security and reliability is high.

What is NEFT

Immediate Payment Service (IMPS) allows instant money transfers to be completed any day at any time (on Sundays or during bank holidays). IMPS facilitates real-time fund transfers (in this instance) via a variety of channels (mobile banking application, Internet banking, ATMs and/or using your UPI linked IFSC). Because both sender and the receiver instantly receive an acknowledgement of the transfer being completed in real-time, IMPS becomes a highly convenient method of money transfer for daily usage.

When You Should Use IMPS

You are in need of a fast/easy and quick way to send small/medium amounts of cash
You need to send money to someone immediately (e.g., after an emergency has occurred)
You need to transfer funds at night or on a holiday when your bank is closed.
You are capable of making payments via your mobile phone.
You want to send money to friends/family quickly.
You are making a utility bill payment or other purchases that require instant credit.

Key Differences Between RTGS, NEFT, and IMPS

Feature	RTGS	NEFT	IMPS
Full Form	Real Time Gross Settlement	National Electronic Funds Transfer	Immediate Payment Service
Processing Speed	Instant	Batch-wise	Instant
Availability	Banking hours	24×7	24×7
Transfer Type	High value	All value ranges	Small & medium
Minimum Limit	Usually ₹2 lakh	No minimum limit	No minimum limit
Maximum Limit	No upper limit (bank policy applies)	No upper limit (bank policy applies)	Usually up to ₹5 lakh
Mode	Online & branch	Online & branch	Mobile & online
Settlement	Real-time	Deferred/batch	Real-time
Ideal For	Large transactions	Routine transfers	Emergency & instant transfers

Charges Applicable

Depending on which bank you are using to transfer funds and what method you use (internet vs. in-branch), the fees charged by each bank will vary.

1. RTGS

It is generally going to have the highest fee because it is for transferring large amounts of money. While several banks waive the fees for transfers made using online digital channels, the majority of banks will charge a fee for branch transfer of funds using RTGS.

2. NEFT

Fees are typically low or even no fee, especially if using online channels like internet or mobile banking which has been encouraged by the Reserve Bank of India (RBI).

3. IMPS

It may have a very small nominal fee attached to it, with banks charging according to the amount transferred, although many banks are currently offering IMPS for free in order to encourage digital payment.

For that reason, it is likely that, combined with other factors (i.e., the ease of an electronic transfer vs. visiting a brick-and-mortar location), it will cost less to transfer via online channels rather than going to a branch location. The fees associated with transferring funds will also vary depending on whether you are transferring funds from one account to another at the same bank or from one bank to another.

Refer this: What is Bank Reconciliation Statement - Format and How to Prepare it

Which is Better: RTGS, NEFT, or IMPS

You select according to what you want.

When you want an urgent transfer over a large sum of money, pick RTGS.
When you want to do your payroll or routine transfers select NEFT.
When you need to make an emergency cash transfer immediately use IMPS.

With the use of UPI and IMPS you can make digital transactions almost instantly, regardless of how much or how little you are transferring.

Conclusion

There are differences between RTGS, NEFT, and IMPS. RTGS is designed for urgent, high-value transactions requiring immediate settlement on the same day during normal bank operating hours. NEFT is designed for ongoing payment needs, including payroll, and is available 24 hours a day, seven days a week, and on all holidays, making it affordable and easy to use for both consumers and businesses. For immediate or "cash-like" payments that can be sent now or anytime (nights and weekends), including for small-to-medium amounts, IMPS is the best option.

FAQs

1. Is it possible to send money during the night?

Yes, you can send and receive money on NEFT and IMPS at any time, including holidays. The RTGS facility has a strict time schedule limited only to banking hours.

2. Is there no charge for RTGS transfers?

A number of banks provide free online RTGS, but others still charge for RTGS transactions executed in a branch or physical location.

3. Can I reverse/redispatch an already made RTGS or NEFT payment?

In most cases, no. Payments made via NEFT and RTGS cannot be reversed/ redeployed after they have been completed. You must contact the bank for assistance with disputes.

4. Which is the best way to send a high value payment?

RTGS is the best way to quickly send a large sum of money.

5. Is IMPS generally safer than NEFT or RTGS?

Yes, IMPS, NEFT and RTGS are all safe. All three methods are regulated by RBI, therefore security is determined by following good banking practices

6. Out of NEFT, IMPS and RTGS which is fastest?

IMPS and RTGS both have real-time transfer speeds. The NEFT transfer speed is slower because of the batch processing that occurs throughout the day.

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