All about online money transfers such as IMPS, NEFT and RTGS

Online money transfer systems such as NEFT, IMPS and RTGS make the whole process of transferring money throughout the country very easy!

Earlier, you needed to have access to a computer to carry out banking transactions. However, as time passed, banking was possible with the help of a smartphone. This helped in making banking even more accessible. Thanks to the numerous banking apps available, it is possible to carry out banking actions 24/7. Some of the different types of transactions available in India are national electronic funds transfer (NEFT), immediate payment service (IMPS), and real-time gross settlement (RTGS).

If you have just been introduced to the world of banking, all of these terms could get quite confusing. To learn more about each one, go through the following article which will help in understanding the workings of NEFT, IMPS, and  RTGS in detail:

National Electronic Funds Transfer (NEFT):
 

National Electronic Funds Transfer (NEFT) can be defined as an electronic payment system that’s known for facilitating direct one-to-one payments throughout the country. With the help of this facility, it is possible for you to electronically transfer funds from your account to any individual who has an account with any other bank that is known for offering the NEFT service. It is also possible for you to make NEFT transactions using digital modes of money transfers such as internet banking and mobile banking.

Owned and managed by the RBI (Reserve Bank of India), the NEFT can be described as a centralised payment system that is known for operating across the nation. This type of money transfer is known for having pan-India coverage that is known for consisting of a huge network of branches of all types of banks. So, if you were to have an account in a bank, and the account you are transferring to is in another bank, you could easily do so. However, it is important to note that the maximum amount that one can transfer through NEFT is set at ₹20,00,000.

Immediate Payment Service (IMPS):
 

This type of money transfer option is defined as a real-time electronic fund transfer method in which the payment is instantly credited to the beneficiary’s account. A major reason behind the popularity of online IMPS transfers is that they can be carried out at any time 24/7 and on all days of the year, including Sundays and even on bank holidays. (NEFT also available 24x7 now)

By using the IMPS option, it is possible to initiate interbank transactions through numerous channels such as internet banking, ATMs, SMS, and mobile banking. Unlike other types of money transfer methods, such as RTGS and NEFT, an alluring feature of IMPS is that this service can be availed regardless of the time, be it night or day. At IDFC FIRST Bank, the IMPS transfer limit is ₹2,00,000.

Real-Time Gross Settlement (RTGS):
 

Under RTGS, funds can be transferred in no time, and to any third-party beneficiary. But the only requirement for you to fulfil is that the beneficiary’s account, i.e., the account to which you are paying, should be in a bank that’s known for participating in RBI’s Real-Time Gross Settlement System (RBI – RTGS).

You could use a banking app for an RTGS online fund transfer after making note of the online transaction limit. For example, the RTGS transfer limit of IDFC FIRST Bank is set at a minimum limit of ₹2,00,000 and a maximum limit of ₹20,00,000. (RTGS can be done from branches for above 20lac, please get this validated from product team)

Apart from the net banking transaction limit, timing is also another factor you need to keep in mind for each of these money transfer options. While NEFT and IMPS are available 24/7, the timing for transferring funds through RTGS can differ from bank to bank.

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.