Electronic Fund Transfer Methods in India (NEFT, IMPS, RTGS)

Confused by NEFT, RTGS & IMPS? This blog unravels the world of electronic fund transfers in India, making your money move smoothly & easily.

Money Transfer Online

Cash Transactions have slowly started losing their relevance, especially after Unified Payments Interface (UPI) took the country by storm. But even before the advent of UPI, we had multiple Electronic Fund Transfer (EFT) methods in existence, and they are still pretty much relevant.


NEFT full form: National Electronic Fund transfer
NEFT limit: No Upper limit (but can Depend on the Bank)
NEFT Timing: 24/7 on all days of the year (online), 8 am - 7 pm from Mondays to Fridays,
8 am - 6:45 pm on Saturdays at Bank Branches.
NEFT Charges: Free online, Rs. 2.5 to Rs. 25 depending on the transferred amount.
NEFT Transfer Time: 30mins to 2hrs

NEFT settlements happen in batches throughout the bank’s working day, this means the settlement is almost instantaneous. You can’t use this service on bank holidays, but when you can use it, it works flawlessly.


RTGS full form: Real Time Gross Settlement
RTGS limit: Minimum Rs. 2 lakhs
RTGS Timing: 24/7 on all days of the year
RTGS Charges: Free Online, Rs. 15 plus GST at bank branches
RTGS Transfer Time: Almost Instantaneous to 30mins

For lightning-fast transfers, this is the preferred method, but you can only use this for transfers upwards of 2lakh rupees. The transfer typically happens immediately, if not, it will be completed in under 30 minutes. You will need an RTGS-enabled account to transfer money using RTGS.


IMPS full form: Immediate Payment Service
IMPS limit: A maximum of Rs. 5 lakhs per day
IMPS Timing: 24/7 on all days of the year
IMPS Charges: Rs. 2.5 to Rs. 15 depending on the transferred amount
IMPS Transfer Time: Instantaneous

IMPS transfers are done through mobile phones using net banking or the bank’s application. This is great for transferring small amounts.


The Unified Payments Interface (UPI)is arguably the biggest disrupter in the payments system. Transferring money has never been this easy before. You don’t even need the bank details of the beneficiary as long as you have their Virtual Payment address. There are no transaction charges, but there is a 1 lakh limit per day. You would already know this bit about the transfers being instantaneous.

Depending on your requirements you can choose the transfer method. For small transfers, UPI is the go-to method right now. The usage of IMPS has declined ever since UPI came into the picture. RTGS is great for transferring large amounts of money instantly, while NEFT is ideal for transferring money under 2 lakhs, which is why this is the go-to method for transferring salaries. NEFT, RTGS, and IMPS methods require bank details of both the remitter and the beneficiary in order to initiate a transfer, unlike the case with transfers making use of UPI. With the biggest restriction of bank holidays being bypassed by the use of online bank platforms, transferring funds electronically has been made very convenient.