What is the difference between IMPS, NEFT & RTGS?

Using a credit card is a convenient and easy way to buy things that you might require, especially if they are expensive. However, even as credit cards make payments easier, it is important to remember to make timely credit card payments.

While there are several ways by which you can make credit card payments, read on to learn about the three best ways to make credit card payments easily and conveniently.

IMPS

IMPS full form is Immediate Mobile Payment Services. Managed by the National Payment Corporation of India, IMPS offers 24*7 services for interbank funds transfer. IMPS services can be availed for making payments anytime through the year, including on bank holidays which include weekends and other national holidays.

RTGS

RTGS full form is Real-Time Gross Settlement (RTGS), which is usually used for making large transactions that need to be cleared immediately. True to its name, RTGS offers real-time settlement of gross values.

NEFT

NEFT full form is National Electronic Funds Transfer (NEFT). This payment method facilitates interbank transfers in a one-to-one fashion, but not in real-time. These transfers do not happen in real-time and usually occur in 23 half-hourly batches over the course of a day.

IMPS vs RTGS vs NEFT

While all three methods mentioned above are extremely convenient and useful not just for transferring funds to others, but also for making credit card payments. However, while the main purpose of all three is the same, there are certain differences between them. Read on to learn about these differences and identify the one that is best aligned to your requirements.

Comparison CategoryNEFTRTGSIMPS
Type of SettlementHalf hourly batchesIn real-timeIn real-time
Minimum Fund Transfer LimitRe. 1Rs. 2 lakhsRe. 1
Maximum Fund Transfer LimitNo limit, but limit set at Rs. 50,000 per transaction cash-based remittances within India and NepalNoneRs. 2 lakh
Availability365 days 24*7365 days 24*7365 days 24*7
Charges for TransactionNo charges on inward transactions, which refers to destination bank branches where the amount is being credited to beneficiary accountsNo charges on inward or online transactions

If funds between Rs. 2 to 5 lakhs are to be transferred, up to Rs. 25 will be charged

If funds more than Rs. 5 lakhs to be transferred, up to Rs. 50 to be charged

Additional GST charges to be levied
Charges for IMPS transaction are decided by the respective banks and Prepaid Payment Instruments (PPIs), inclusive of taxes.
Payment OptionsBoth online and offline modes availableBoth online and offline modes availableOnly online mode available

Conclusion

As per the above table, it is evident that the payment mode you choose depends on your individual requirements, such as how soon you need the payment to be credited, the amount that you are looking to transfer, etc.

Since RTGS has a minimum fund transfer limit of Rs. 2 lakhs, you will be forced to opt for the other methods if your transfer amount is lesser than that. Regardless of the method you choose, remember to always make credit card payments on time to continue using them efficiently and effectively.

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