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Things You Need To Know About NEFT, RTGS and IMPS Services

IamCheated.com Research Team | July 26, 2018  6:53:pm

Today transferring money from one bank account to another has become very easy with the latest technology and many citizens have started using digital payments after demonetization. You might have heard of NEFT, RTGS and IMPS services which are used to transfer money. But, many people are still not aware of these services and how they work. In this blog, we will discuss everything you need to know on these services.


NEFT stands for National Electronic Funds Transfer and it helps transfer money from one bank account to another bank account, electronically. The amount can be transferred from any bank branch to any individual having an account with any other bank branch in the country which is participating in the NEFT Scheme. Money can be transferred from an individual or company to an individual or company's bank account. You can get the information regarding banks participating in NEFT scheme on RBI's website. Now most of the banks support this system.

NEFT transactions are done in batches. Currently, there are 23 half-hourly settlement batches and this runs from 8 am to 7 pm on all working days except the second and fourth Saturday. Under NEFT service there is no limit on the minimum or maximum amount that could be transferred. But, the maximum amount per transaction is limited to Rs 50,000 for cash-based remittances. The money will be credited to the beneficiary’s account on the same day.

See Also: ATM Fraud: How To Get Your Money Back After a Scam?


Real Time Gross Settlement (RTGS) is used for large value money transfers and this system enables instant transfer of funds. Under this service, money transfers take place on a real-time basis, i.e at the time the request is received. This is one of the fastest money transfer facilities available in India. The recipient's bank account will be credited within 30 minutes of receiving the funds' transfer message. At present more than 1 Lakh bank branches offer the RTGS facility.  The minimum amount that can be remitted through RTGS is Rs 2 Lakhs and there is no upper ceiling for RTGS transactions.


Both NEFT and RTGS are maintained by the RBI. NEFT settles transactions in batches and operates on a deferred net settlement (DNS) basis. Under NEFT, settlement take place with all the transactions received till a particular cut-off time.

It operates in half-hourly batches and there are 23 settlements from 8 am to 7 pm on all working days of the week except the second and fourth Saturdays. Any transaction initiated after the particular time will have to wait till the next settlement. In case of RTGS, transactions take place continuously throughout the RTGS business hours and transactions are settled individually.


Immediate Payment Service (IMPS) is a real-time payment service managed by the National Payments Corporation of India (NPCI). This service is available round the clock. The main benefit of IMPS is its instant and available even on holidays. IMPS is very safe and easily accessible. You can conduct IMPS transactions through mobile, Internet or ATM channels.

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