Difference Between NEFT and IMPS (IMPS vs NEFT in detail)

To transfer money electronically (without cash, cheque, etc.) from one bank account to another, the most common options are NEFT and IMPS apart from a lesser known option RTGS which can be used only for high valued transactions (minimum limit for RTGS is 2 lakhs).

While transferring money, most of the people are confused about IMPS vs NEFT and at last choose something at random. For the best results, it is important to understand the difference between NEFT and IMPS in detail and only then choose what is best for your need.

What is NEFT

NEFT means National Electronic Fund Transfer. NEFT is a nation-wide payment system that allows you to send money electronically from one bank account to another. This process of funds transfer is not instantaneous i.e. there will be some delay in money transfer. Further, NEFT is not available round the clock, it is operational only during the bank’s working hours (Weekdays- 8 am to 7 pm, Saturday - 8 am to 1 pm). It can be accessed via both MobileBanking or NetBanking.

What is IMPS

IMPS means Immediate Payment Services. IMPS is facilitated by NPCI (National Payments Corporation of India) and was introduced in 2010. IMPS is also a nation-wide payment system to send money electronically from one bank account to another. But unlike NEFT it operates 24*7 throughout the year (i.e. no holidays) and money transfer is instantaneous. The receiver gets the money in his account within seconds.

NEFT Vs IMPS - Timings

• NEFT operates in hourly batches — there are 12 settlements between 8am to 7pm on weekdays (Monday through Friday) and 6 settlements between 8am to 1pm on Saturdays. For settlements after 5 pm on weekdays and after 12 pm on Saturday, the money transfer typically happens on the next working day. Any transactions made before this cut-off are credited on the same day to the receiver.

NEFT Vs IMPS Charges

Please note that the charges given above are the maximum that can be charged as per RBI guidelines. Different banks may have different charges for NEFT and IMPS. For example, HDFC bank has made the transaction upto Rs 1000 totally free w.e.f 1st Jan 2017. So it is best to check the charges in the respective banks’ websites.

NEFT Vs IMPS Process

Both NEFT and IMPS can be accessed via MobileBanking or NetBanking. In NEFT, you have to first add the beneficiary account number, name and IFSC. Once this is done and the beneficiary account is activated, then you can start funds transfer. If the beneficiary is already added into your account's beneficiaries list, you can just select it and do the transfer.

In IMPS you have two ways for doing funds transfer -

• Using Account number and IFSC
• Using MMID and Mobile number

The first IMPS process 'Using Account number and IFSC' is similar to NEFT wherein you first add the beneficiary account into your account's beneficiaries list, wait for it to get activated and then do the funds transfer.

In the other IMPS process 'Using MMID and Mobile number' you need your beneficiary’s 10 digit mobile number and MMID to send money. MMID is 7 digit number.

In both NEFT and IMPS, you will get a confirmation of transaction by SMS or e-mail.