Difference Between NEFT And RTGS

“What is the difference between Neft and RTGS?” are the usual questions of people, who are new to fund transfers. In order to clarify these questions, it is important to know the basics of transferring funds in a settlement transaction. NEFT full form is National Electronic Funds Transfer, while RTGS is an acronym for Real-Time Gross Settlement.

The term ‘RTGS’ is used to describe Real-Time Gross Settlement in which the people receive payment for the transaction in real-time and on a gross basis. When a person uses this type of payment system, he or she can enter into a structured financial transaction without having to deal with the intricacies of a traditional cash-only transaction. This reduces the costs that a person incurs when entering into a traditional cash transaction. However, when comparing NEFT And IMPS, it is important to note that while RTGS transactions can be entered into on a monthly, quarterly, or annual basis.

What's the Difference Between NEFT, RTGS, and IMPS?

Before knowing about the main difference between all the transaction methods let’s talk briefly about each service.

NEFT – National Electronic Funds Transfer

In many areas of the country, it has become more common for people to use National Electronic Funds Transfer to accomplish various financial transactions. With more people using electronic funds transfer to pay their bills, banking transactions, and send money online for nearly any purpose, National Electronic Funds Transfer has become a popular option. When used correctly, NEFT can be one of the most beneficial options that individuals have available to them when it comes to sending money online through different banks and financial institutions.

RTGS – Real-Time Gross Settlement

Real-Time Gross Settlement (RTCG) is an electronic method of global cash transfer in which the transfer takes place over a real-time basis directly between a customer and a creditor. More than 60 different countries use RTGS systems throughout the world. RTGS is often used as an alternative to Faster Transport Protocol (FTP), International Money Transfer System (IMTS), or Credit Transferral System. It is generally agreed that Real-Time Gross Settlement is a more convenient, secure, and efficient alternative to conventional methods of transferring money through banks and other financial institutions.

IMPS – Immediate Payment Service

Immediate Payment Service ( IMPS) is a type of online money transfer in the conventional banking system based on the National Payment Service (NPS). It is designed on the National Payment Service (NPS) platform, managed by NPCI ( National Payments Corporation of India). Also, it offers a wide range of services such as direct payments, electronic transfers, and non-cash payments. It is a payment service, which can be availed of from any financial institution based on its association with NPS.

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Timing Difference In NEFT, RTGS, and IMPS

No doubt that there is no timing difference in NEFT, RTGS, and IMPS. Because all these facilities are available all day (24X7X365). Actually, The Reserve Bank of India (RBI) has introduced NEFT, RTGS, and IMPS all time all day available including bank holidays to promote digital transactions. RTGS AND NEFT TIMINGS in other banks.

Difference Between NEFT, RTGS, and IMPS

The main RTGS And NEFT Difference are added on the below table.




Minimum Transfer Amount


 Rs.2 lakh


Maximum transfer Amount

Depend on customer type

No Limit

Rs.2 lakh

Settlement Time

2 hours



24 X 7 X 365 Availabilty

Online/Can use on net banking?

Offline/Direct In Branch


Charges Difference In NEFT, RTGS, and IMPS

NEFT Charges: NEFT will charge a little amount to transfer money. These charges are not fixed. It varies from bank to bank. If your transfer amounts up to 1 lakh then the charges will be Rs.5/- & Transfer amount 1 lakh to 10 lakh then NEFT will charge Approximately Rs.25/-.

RTGS Charges: RTGS Charges are totally different from NEFT. Because RTGS will not charge you if your transaction limit is up to Rs.2 Lakh. But It will take charges approximately Rs.20/- to Rs.50/- if your transfer amount is more than Rs. 2 lakh.

IMPS Charges: IMPS doesn’t charge you if you transfer above Rs. 2 lakh. But It takes charges from a small amount of transactions like if you transfer up to Rs. 1 lakh then it will charge Rs.5/-. It charges you around Rs. 15/- if your transfer amount is between Rs. 1 lakh to Rs.2 lakh.

All the above charge rates might not be matched while you transfer money to your bank account & also, the above-mentioned charges are without GST. So, charges might get an increase if you add GST. Get to know more about RTGS Charges.

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FAQ’s About NEFT, RTGS, and IMPS

  1. Which is better IMPS or NEFT or RTGS?

Ans: It depends on you! If you want to transfer the money quickly then you should use IMPS. But if your transfer amount limit is high then you will have only one option that is RTGS. Because RTGS offers no maximum limit for transfer.

2. Which is better NEFT or IMPS?

Ans. It also depends on your transfer amount. If your limit is below 2 lakh then you should use IMPS. But at a higher transfer amount, you can’t use IMPS.

3. Is Google pay NEFT or IMPS?

Ans: Both are not correct because google pay uses UPI for the transaction.

4. Which is safe IMPS or RTGS?

Ans: Both are safe methods. But while transferring a big amounts people use only RTGS.

*Shillong Teer Public Group

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