National Electronic Fund Transfer or NEFT is a digital payment method introduced by the Reserve Bank of India. You can transfer funds between two different NEFT-enabled accounts using this method 24×7, across the year. The transfer time could take up to a few hours as the transfers are done in 30-minute batches.
IMPS stands for Immediate Payment Services. It allows both inter and intra-bank services up and is available 24X7 across the year up to ₹5 lakh. This instant fund transfer service can be availed through internet banking, mobile banking, SMS and even via an ATM. To transfer money online, you should have both a mobile number and MMID or IFSC code and account number.
There are four participants involved in the fund transfer process through IMPS:
Remitter needs to meet the following requirements:
A beneficiary needs to do the following to receive the fund from the remitter:
Online fund transfer can happen in either of the two ways:
Not in all the cases, both the beneficiary and the remitter will have their mobile number registered with their respective banks. In such scenarios, fund transfer can be made possible using the account number and IFSC code as well.
To avail of services through mobile banking or SMS, both remitter and beneficiary should activate the mobile banking facility and obtain MMID, which is a one-time procedure.
|Minimum transfer limit||₹1||₹1|
|Maximum transfer limit||None||₹5 lakh|
|Payment mode||Online and offline||Online and offline|
|Outward Transaction Charges||• Up to ₹10,000: ₹2.5 + GST|
• ₹10,000 to ₹1L: Max ₹5 + GST
• ₹1L to ₹2L: Max ₹15 + GST
• Above ₹2L: Max ₹25 + GST
*All exclusive of GST
|• Up to ₹1000: ₹3.5 + GST|
• ₹1001 to ₹1 lakh: ₹5 + applicable GST
• Above ₹1 lakh: ₹15 + applicable GST
Both IMPS and NEFT are quick and easy money transfer methods backed by NPCI and RBI, respectively.
If you’re looking to transfer money immediately, IMPS could be faster than NEFT as the latter might take a few hours to complete the transaction.
However, IMPS transactions have an upper limit of ₹5 lakh – if you want to transfer a bigger amount, you should consider NEFT or even RTGS. In fact, RTGS could be a faster method to transfer funds above ₹2 lakh than NEFT as it’s done on a transaction-to-transaction basis, unlike the latter’s batch system.
That said, while IMPS offers both P2A (using beneficiary’s account number and IFSC) and P2P services (using beneficiary’s MMID and phone number), NEFT only offers P2A. However, IMPS can only be done online while users can also visit a bank branch to make an offline NEFT transfer.
The IMPS vs NEFT question is not very tough, provided you’re aware of the pros and cons of each to find out which one meets your specific requirements. For example, for transactions up to ₹5 lakh, IMPS is likely to be quicker than NEFT. However, for bigger transactions, you’ll have to choose between NEFT and RTGS. We hope our detailed IMPS vs NEFT comparison will help you make the right choice.
That said, if you’re looking for urgent cash, you may consider an instant Navi Cash Loan of up to ₹20 lakh starting from just 9.9% p.a. Simply download the Navi app, enter basic details like PAN and Aadhaar number, check loan eligibility, complete KYC verification, and get the amount transferred to your bank account in a few minutes!
No, you cannot withdraw funds using NEFT. National Electronic Fund Transfer only allows online fund transfers from one account to another.
You can reach the NEFT customer care or RBI help desk in case of query or problem on the following contact information:
Primary Data Centre, RBI, CBD Belapur, Navi Mumbai, Maharashtra – 410210.
Indian Financial System Code or IFSC is the 1 digit alphanumeric code which is unique to every bank branch used for identification in online payments such as RTGS, IMPS and NEFT. It is developed by the Reserve Bank of India.
You can avail of the following services through IMPS:
– Foreign inward remittance
– Money transfer
– Checking functionalities of beneficiary account
– Checking transaction status
Yes, you can link more than one bank account to a mobile number. Each account will have a unique Mobile Money Identifier (MMID).
Both are extremely safe as IMPS is operated by RBI-promoted NPCI and NEFT by RBI itself.
For a transfer amount of less than ₹10,000, NEFT could be slightly cheaper than IMPS. But for any amount higher than ₹10,000, IMPS could be slightly cheaper than NEFT. Do note, IMPS has an upper transaction limit of ₹5 lakh while NEFT doesn’t have any such limits.
IMPS is faster than NEFT as the latter is settled in 30-minite batches.
NEFT doesn’t have any daily transaction limits. However, check with your bank regarding internal third party transfer restrictions.
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