NEFT Vs RTGS Vs IMPS
As we all know that now banking modules are had become online and we can make transactions using our internet banking. I am sure that most of us has done an online transfer across different banks(SBI to ICICI,AXIS to HDFC) and this post is just to list the different paths an inter-bank transfer can be made. At this point of time there are three different protocols which were used in India namely.
We will talk about them in details
1. NEFT (National Electronic Fund Transfer)
- NEFT abbreviates to National Electronic Fund Transfer.
- The transactions are not settled on Real time and these operate in batches i.e. they use Deferred Net Settlement System. One or more transactions were grouped and they were posted to settlement on the pre-defined timings as BATCHES.
- NEFT operates in hourly batches from 9 am to 7 pm (11 Settlements) on week days and 9 am to 1 pm (5 Settlements) on Saturdays.
- There is no limit on the minimum amount and the maximum amount you can transfer using a NEFT will be 5 lakes.
- As stated above, NEFT operates in hourly batches. Currently there are eleven settlements from 9 am to 7 pm on week days and five settlements from 9 am to 1 pm on Saturdays. Therefore, the beneficiary can expect to get the credit for the transactions put through between 9 am to 5 pm on weekdays (between 9 am to 12 noon on Saturdays) on the same day. For transactions settled in the 6 and 7 pm batches on week days and at 1 pm on Saturday, the credit will be afforded either on the same day or on the next working day.
- If the beneficiary’s bank is unable to credit the beneficiary’s account for any reason, the former will return the money to the remitting bank within 2 hours of completion of the batch in which the transaction was processed. Once the amount is received by the remitting bank, it is credited to the remitter’s account by the branch concerned.
- The charge depends on the amount being sent and the maximum charge per transaction is limited to 25 INR.
- NEFT cannot be done on Sundays & National bank holidays
2. RTGS (Real Time Gross Settlement)
- RTGS Abbreviates to Real Time Gross Settlement.
- The transactions between the banks are settled on real time and the destination bank has to credit the beneficiary’s amount within two hours. Ideally this is faster than NEFT as this does not operate as batches and each transaction executes on its own.
- The minimum amount of money which needs to be transferred to use RTGS is 2 lakhs
- If the beneficiary’s bank is unable to credit the beneficiary’s account for any reason, the former will return the money to the remitting bank within 2 hours. Once the amount is received by the remitting bank, it is credited to the remitter’s account by the branch concerned.
- The charge depends on the banks, the different slabs in amounts and the time of the transfer involved (morning, noon, evening)
- RTGS cannot be done on Sundays & National bank holidays
3. IMPS (Inter bank Mobile Payments Service)
The new kid in the block is IMPS and its started 2 years back and slowly catching up and using a transfer can be initiated even on government holidays.
- IMPS abbreviates to Inter bank Mobile Payments Service.
- These are real time and these can be initiated from a browser/mobile phone.
- The salient feature will be it does not even need your account numbers to be shared to the other party. Instead you need to give the other party MMID and your mobile phone number.
- The maximum amount which can be transferred is 50K through IMPS.
- By using IMPS an inter-bank transfer can be done any time of the day and anytime of the year. So be it Sunday or public holidays you still have the liberty to do a fund transfer across banks.