Which is better NEFT or IMPS

Difference between NEFT and IMPS

Do you want to transfer money? There are many ways to transfer funds electronically that are safe and convenient at the same time. These modes in NEFT, RTG and IMP, with which the un


Would you like to transfer money? There are many ways to send funds electronically that are safe and convenient at the same time. Such modes are NEFT, RTGS and IMPS, which allow you to work regardless of bank account, i.e. bank account. H. The same bank or another bank, can transfer money immediately. While NEFT (National Electronic Fund Transfer) Executes the transaction in batches, inRTGS (Real Time Gross Settlement) The transaction is processed in real time.

IMPS (instant payment system) is one such system that still finds its feet. It is used to transfer money through smartphones. Since there is no minimum transfer cap in either NEFT or IMPS, people have a hard time figuring out which is better. If you are also a beginner at transferring funds, read this article to find out which system is perfect for you.

Comparison table

Basis of comparisonNEFTIMPS
importanceNEFT is a payment system that enables nationwide electronic transfer of funds in near real time.IMPS is an instant interbank money transfer system that allows the remitter to transfer money using smartphones.
Keep workingBatchesReal time
AvailabilityOnly during working hours during the day24 × 7 all year round
Transaction limitNo limit2 lakhs
Settlement cycle12 settlements in one working day.Continuous processing
speedComparatively slowFast
categoryOnline bankingMobile banking

Definition of NEFT

National Electronic Funds Transfer, abbreviated as NEFT, was developed in 2005 as an improved version of Special Electronic Fund Transfer (SEFT). It is a nationwide money transfer system that is based on DNS (Deferred Net Settlement) and in which transactions are completed in hourly batches. Therefore, the transfer of funds from one account to another is processed in near real time. with each batch facilitating the processing of many transactions at once. The sender needs to enter recipient details to proceed with the NEFT transaction, such as name, account number, bank name, IFSC code, etc.

Only those bank branches that are NEFT-capable can participate in this payment system. In this way, any person, firm or firm can electronically transfer funds from one bank branch to another bank branch that is part of the NEFT money transfer network.

In addition, not only can those who have an account with the bank transfer money through NEFT, but customers (customers who do not have a bank account) can also transfer money through this scheme by simply depositing cash in NEFT-enabled branches and giving instructions Bank to transfer money through NEFT. Such cash transfers are allowed up to INR 50,000 per transaction.

Definition of IMPS

IMPS or Immediate Payment Service is a mobile payment system that enables a 24-hour transfer of funds between banks via smartphones in real time. It is an effective technique that enables safe and economical online money transfer within the country via cell phones, the internet and ATMs.

The system was introduced in 2010. The National Payment Corporation of India (NPCI) offers this option through their National Financial Switch (NFS).

With this service, you can access your bank account on your mobile phone and transfer money easily. For this purpose, both the remitter and the beneficiary must be registered with the bank's mobile banking service and receive the Mobile Money Identifier (MMID) - a seven-digit code that the bank issues the customer when registering. Bank account number, mobile phone number, MMID and IFSC code are certain details of the beneficiary that are mandatory for the completion of the IMPS transaction.

Main differences between NEFT and IMPS

The difference between NEFT and IMPS can be clearly drawn for the following reasons:

  1. NEFT is an electronic payment system that enables nationwide electronic transfer of funds in near real time. IMPS is an instant interbank money transfer system that allows the remitter to transfer money using smartphones.
  2. NEFT works in hourly batches, in which the transactions are not processed at the same time, but rather the processing takes some time. On the other hand, IMPS transfers money from one account to another in real time at any time of the day.
  3. NEFT is only available during working hours, i.e. H. Every working day, except on the 2nd and 4th Saturday, from 8 a.m. to 7 p.m. Conversely, IMPS is available around the clock.
  4. There is no minimum or maximum limit for NEFT transactions, but for cash transfers and transfers to Nepal the limit is up to INR 50,000 per transaction. On the contrary, in the case of IMPS there is no minimum limit, but a maximum transfer per transaction is allowed up to INR 200,000.
  5. There are a total of 12 billing cycles per working day for NEFT transactions. In contrast to IMPS, billing is continuous.
  6. When it comes to speed, IMPS is faster than NEFT as the earlier credits settle recipients in a matter of seconds.
  7. NEFT falls under the e-banking category, while IMPS falls under mobile banking.


A few decades ago, transferring funds to someone else was so difficult as it would take a lot of time and people would have to wait in line for hours to transfer a penny. However, with the advent of these systems, transferring funds has become so easy that people appreciate and advocate such changes in the banking system.

In both payment systems, the transaction fees are borne by the sender of the funds. Furthermore, such fees may vary according to the particular disk. So both money transfer programs have their advantages that you can choose at will.