The Indian banking system has come a long way since the old days when money transfer would take days . The systems are now enabled with electronic transfers like RTGS, NEFT, IMPS where funds are transferred real time.
So what is the difference between RTGS, NEFT And IMPS?
The basic difference between RTGS and NEFT lies in the settlement timings and amount.
Real Time Gross Settlement (RTGS) is based on the gross settlement where the transaction is settled on an instruction by instruction basis.
National Electronic Funds Transfer (NEFT) is an electronic fund transfer system which settles transactions in batches.
What is the basic requirement for transfer of funds through NEFT and RTGS?
To transfer funds, one needs the account number of the beneficiary, IFSC Code of Bank Branch and name of the beneficiary and amount to be transferred.
How much one can transfer?
NEFT is transfer of funds online by a financial institution, mainly for the banks in India. It has no limit either minimum or maximum – on the amount of funds that could be transferred using NEFT.
RTGS is based on the gross settlement where the transaction is settled on an instruction by instruction basis. In RTGS the minimum amount should be above Rs 2 lakh and maximum amount is Rs 10 Lakh.
Immediate Payment Service (IMPS) is a remittance service through which one can transfer money anytime, anywhere across India.IMPS basically involves a transfer mechanism using the mobile phone. A host of banks allow the transfer through this mechanism including the reputed banks like State Bank of India, ICICI Bank and Axis Bank.
Based on their requirements, consumers are free to choose the services they want they can choose the services they want. Ultimately, Money transfer has been made easy due to all of the services given above.