We are not new to the online transfer of money but do we know the difference between the methods which we generally use to transfer money to someone. Here come the three terms named as NEFT, RTGS & IMPS. There are more but we will concentrate on these now. So let’s understand them one by one:
It stands for National Electronic National Electronic Funds Transfer. It is a nation-wide payment system facilitating one-to-one funds transfer. Under this Scheme, individuals, firms and corporates can electronically transfer funds from any bank branch to any individual, firm or corporate having an account with any other bank branch in the country participating in the Scheme. There is no maximum or minimum limit while transferring money using NEFT, but a single transaction has a maximum limited of 50000 rupees. The money is transferred on a half hourly basis i.e. a bulk of transactions are accumulated and offset against each other, and then transferred at the end of every half hour cycle. The NEFT service is provided by the RBI only on working days, it is not 24 by 7.
It stands for Real-Time Gross Settlement. Unline NEFT where the amount is transferred at the end of each half hour cycle, in this money is transferred on a real-time basis. RTGS is used to carry out bulk transaction i.e. the amount of money to be transferred should not be less than 2 lakh rupees. This service is also provided by the RBI only on working days.
It stands for Immediate Payment Service. This is a service which is provided 24 into 7 by the National payment corporation of India (NPCI). There is no minimum limit while maximum limit depends on whether you are using IFSC code (Indian Financial System Code) or not.