IMPS vs NEFT vs RTGS: Differences, Timings and When to Use Each

IMPS (Immediate Payment Service)

IMPS is run by NPCI (National Payments Corporation of India). Money reaches the beneficiary instantly, every day of the year, including Sundays and bank holidays. You can send using the account number and IFSC, or a mobile number and MMID. RBI allows IMPS transfers of up to ₹5 lakh per transaction, though each bank can set its own lower limit.

NEFT (National Electronic Funds Transfer)

NEFT is run by the Reserve Bank of India. It settles transfers in half-hourly batches, and since December 2019 it has been available 24x7. RBI does not set a minimum or maximum amount for NEFT, but banks may apply their own limits. NEFT is the default choice for routine, non-urgent payments.

RTGS (Real Time Gross Settlement)

RTGS is also run by RBI. Each transfer is settled individually and immediately, which is why it is used for large payments. The minimum amount is ₹2 lakh and there is no RBI upper limit. RTGS has been available 24x7 since December 2020.

Which one should a business use?

• Urgent payment below the IMPS limit, such as a vendor who needs funds now: IMPS.
• Scheduled vendor payments and salaries where same-day is enough: NEFT.
• High-value payments of ₹2 lakh or more that must settle immediately: RTGS.
• Many payments at once: use a bulk payment tool that picks the right rail for each payment and reconciles the results.

Frequently asked questions