When a person tends to make domestic money transfer in India, he or she might come across three terms- NEFT, IMPS and RTGS.
Well, what are these acronyms? What is their role in domestic money transfer?
These three are the online money transfer services provided by Indian banks, each has different types of settlements, timings, and transaction limits. So, here this blog is aimed to make it easier to understand what these NEFT/IMPS/RTGS mean and when to use each of them while you step out to make domestic money transfer.
So, now it’s time to discuss about each of them- one by one
What is NEFT?
NEFT is the acronym for National Electronic Funds Transfer. It allows individuals, companies, and establishments do one-to-one bank transmissions digitally. That means, even if you and your beneficiary have different bank accounts, you can still transfer funds directly into their bank account using NEFT. The system only works only if both banks are NEFT-enabled. There is no minimum or maximum amount that can be sent using NEFT, except you are doing an in-person cash-based transmittal within India where the cap is Rs. 50,000.
What is IMPS?
IMPS stand for Immediate Payment Service. While IMPS has been introduced, it reformed how and when someone can do a domestic transfer without any barriers. It is a real-time money transfer service that permits prompt transfers from your bank account using your money transfer apps, mobile payment, ATM, SMS or at even the branch.
What is RTGS?
Real-Time Gross Settlement is the full form of RTGS. It is the alternative option for online money transfer. RTGS transfers happens in real-time and the payment is not done in sets but on a one by one basis. Like the other options, this is a safe and secure process to transfer money all across India. It works on banking hours and you are supposed to face delays during bank holiday or after working hours until the bank opens back up. Here the money transfer fees are not set by the Reserve Bank of India, so the service providers are free to choose their own charges for the service they deliver.
Now what is the major differences between these three online money transfer services?
Want to know? Then Here we go…
What is the difference between NEFT, IMPS, and RTGS?
Here, lets classify each mode of transfer in terms of settlement, timing and transaction limit;
|NEFT||In 30 minutes, sets||Bank working days||Depends on the service provider|
|IMPS||Instant||24*7||Depends on the service provider|
|RTGS||Instant||Bank working days||Min- Rs.200,000|
With the above details, now you can choose your apt service for domestic money transfer all across India and you can confidently approach the authorized dealer for the best ever experience in fund transfer.