Internet banking or UPI has become a part of our daily life. One dilemma we all might have faced is which is better: NEFT, IMPS, or RTGS? Before understanding the most suitable one for online and safe fund transfers, it is essential to know what NEFT, IMPS, and RTGS are. Read further to know more.
Real Time Gross Settlement (RTGS)
For transactions of high amounts which need quick clearing, RTGS is the preferred method of payment. It is a private and safe method of transferring money. Usually, an RTGS payment requires a minimum of Rs 2 lakh. The deal is settled instantly because it runs in real-time. On working days, RTGS transfers are accessible from 8:00 am to 4:30 pm. The RBI has set a limit on transaction fees, but you may still have to pay them.
National Electronic Funds Transfer (NEFT)
India uses NEFT, an electronic payment method, to transfer money between banks. The transactions are processed in batches at specified periods throughout the day because it uses a deferred net settlement basis. NEFT transfers have no minimal or maximum amount and are accessible around the clock.
For transferring money via NEFT, a client is not additionally charged. Customers with savings bank accounts are not charged for online NEFT transfers. NEFT can be used for a wide range of activities in addition to money transfers, such as paying credit card balances, loan EMIs, and sending money abroad.
Immediate Payment Service (IMPS)
The National Payments Corporation of India provides an instant interbank electronic money transfer service known as IMPS or Immediate Payment Service. Customers can use mobile phones, online banking or ATMs to transfer money between bank accounts in real-time. It can be used to transfer money whenever you want, even on vacations. The beneficiary’s account is instantly credited after the transactions are processed in real-time. For IMPS payments, there is no set minimum or maximum amount.
Remember: The method of online money transfer that is chosen relies on several variables, including the transaction amount, speed, ease, and service accessibility. RTGS is the best choice if you immediately need to transfer a sizable amount. NEFT can be an excellent option if you need to transfer money quickly, but not immediately. IMPS is the best option if you want to send money immediately, including on holidays.
It’s always a good idea to check with your bank before selecting a payment option, because each bank may have various fees attached.
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