IBPS PO 2017: Banking Awareness, Difference between NEFT, RTGS and IMPS


Difference between NEFT RTGS and IMPS – Banking Awareness: Difference between NEFT, RTGS and IMPS

IBPS PO 2017: Banking Awareness, Difference between NEFT, RTGS and IMPS

Difference between NEFT, RTGS and IMPS: NEFT, RTGS and IMPS are common methods of online transaction. It is an important topic for banking awareness for IBPS Exam. The blog discusses all details about the various methods of online transaction.

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The Digital payments and Money transfer is seen as an important part of the financial infrastructure of a country’s economy.

What is NEFT?

NEFT stands for National Electronic Fund Transfer. It is an electronic fund transfer system maintained by Reserve Bank of India. NEFT enables tansfer of funds between bank customers of two NEFT enabled bank accounts on a one-to-one basis. NEFT is available in offices of 101 banks across the country in more than 74,680 branches. NEFT has gained popularity due to ease of use and swiftness of the transfers. NEFT settles fund transfers in hourly batches with twelve settlements between 8.00 am and 7.00 pm on week days. Settlements are closed on second and fourth Saturday of the month.

Transactions Fees or Service Charge:

Free or No Charges for inward transactions at destination bank branches.

Transaction Fee for Outward transaction:


Transaction limit Charges
For transactions up to ₹10,000 (not exceeding) 2.50 (+ Service Tax)
For transactions above ₹10,000 up to ₹1 lakh (not exceeding) 5 (+ Service Tax)
For transactions above ₹1 lakh and up to ₹2 lakhs (not exceeding) 15 (+ Service Tax)
For transactions above ₹2 lakhs : 25 (+ Service Tax)

What is RTGS?

RTGS is Real Time Gross Settlement. It allows funds to be transferred real time and on gross settlement basis. RTGS payments are final and irrevocable. RTGS is used for high value transactions that require immediate clearing. RTGS does not require physical exchange of money and as it is transferred electronically. It is ideal method of payment for urgent payments. RTGS is similar to the BACS system of the UK and is also known as the net settlement system. .

Amount Transfer Charges

Up to 2 – 5 lakhs

Rs. 25-30

Above 5 lakhs

Rs. 50-55

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What is IMPS?

Immediate Payment service or IMPS is is started in India by the NPCI or the National Payments Corporation of India. IMPS offers an inter-bank electronic fund transfer service through mobile phone IMPS is also available on bank holidays, public holidays and Sundays. Currently, there are 53 commercial banks, 101 Rural/District/Urban and cooperative banks, and 24 PPIi signed up for the IMPS service. Banks usually charge 5 Rs + GST as fees for all IMPS done through Mobile. The best part about IMPS is that it gives freedom to the account holders to transfer funds without needing much help of bank and one need not go to the bank to transfer funds, paving the way for personal banking services.

Stay tuned for more updates on Difference between NEFT, RTGS and IMPS!


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