Global payments
Posted on Aug 13, 2025
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The Indian banking system has evolved so much in the last two decades. Earlier, transferring money meant visiting the bank branch, standing in line, filling out the form, and then waiting for days for the money to reflect in the recipient’s account.
Today, the system has evolved so much that electronic systems like NEFT, IMPS, and RTGS have made it possible to send funds to the recipient account within minutes to hours, without going to the bank.
These electronic payment systems are regulated by the Reserve Bank of India (RBI) and are considered the backbone of the Indian banking system.
Although now everyone is aware of these banking terms, confusion still persists in the minds of users, that is, which one to use, when to use and why.
"Should I be using NEFT for a quick payment?" or
"Is IMPS really instant for transferring funds?" or
"What is the role of RTGS for transferring funds?"
In this blog, we will cover all the queries of a user related to RTGS, NEFT, and IMPS. The blog will also discuss their features, pros and cons, and you will know when to use RTGS, NEFT, or IMPS. We will also see how InfinityApp eliminates all the hassle related to IMPS, RTGS, and NEFT payment systems.
Source: Quora
What is NEFT in Banking?
The term NEFT stands for National Electronic Funds Transfer. This system was started to enable the smooth transfer of funds within the banks in the country.
NEFT follows a deferred settlement basis, where the fund is not transferred instantly; rather, it is processed in batches.
When you send money through NEFT, your transfer is scheduled for the next available half-hourly batch. This ensures the secure and regulated movement of funds.
NEFT is supported by almost all the banks in India. It is widely used for transferring funds for both personal and business purposes, as there is no minimum transfer limit for sending money.
What are the key features of NEFT payment system?
NEFT allows the transfer of money at any time of the day. It is available 24x7x365, so you can transfer money even on weekends and public holidays.
As NEFT is regulated by the RBI, it is secure and the safest way to transfer funds within the country.
What are the timings and charges of using NEFT?
Before 2019, NEFT was restricted to banking hours, but now it is available round the clock. So you can transfer money 24x7x365, without worrying about weekends or public holidays.
Charges for NEFT- If you make the transaction online, you do not have to pay any charges. Although if you visit a branch, you might have to pay an amount between INR 2 and INR 25, depending on the amount and the bank.
What are the advantages of using NEFT?
NEFT allows transfer of funds within the country with a low or zero transfer fee.
For NEFT, the RBI has not set any minimum or maximum transfer limit.
NEFT works with almost every bank in India, so there are no transfer restrictions.
NEFT is safe and secure as it is regulated by the RBI.
What are the disadvantages of using NEFT?
NEFT is a slow process. It does not allow instant transfer, so it can take up to hours.
It requires internet banking or a bank visit to make a transfer through NEFT.
What is IMPS in Banking?
The term IMPS stands for Immediate Payment Service. As the name indicates, it allows you to transfer funds instantly between banks.
IMPS was introduced by the. NPCI (National Payment Corporation of India), and it was developed to provide an alternative to NEFT, which works in batches.
IMPS is an extremely popular method for transferring money because of its speed. Be it for personal reasons like sending out money to family or for business reasons, IMPS helps in the instant transfer of funds. IMPS can be done through multiple channels like mobile banking app, internet banking, ATMs and even SMS in some cases.
What are the key features of IMPS payment system?
IMPS is available round the clock, which is 24x7x365. Be it a public holiday, weekend, or any time of the day, IMPS is available to transfer funds instantly.
IMPS also supports government-related transactions, making it a versatile option.
What are the timings and charges for IMPS?
Since IMPS is a real-time service provided by the NPCI, it is available round the clock.
Charges for IMPS- Most of the banks do not charge any fee for IMPS for smaller transactions, up to INR 1000. For higher amounts, charges typically range from INR 2.5 to INR 20 and GST.
What are the advantages of using IMPS?
IMPS allows instant transfer of money at any time of the day.
IMPS can be done through multiple channels like ATMs, SMS, internet banking, mobile banking app, etc.
IMPS is secured and regulated by the RBI and NPCI.
What are the disadvantages of using IMPS?
IMPS can be expensive for higher-amount transactions.
IMPS has a per-transaction limit of INR 5 lakh.
What is RTGS in banking?
RTGS stands for Real-Time Gross Settlement, and it is usually used for high-value, urgent transactions. Unlike NEFT, RTGS settles each transaction on an urgent basis in real-time. The term “gross settlement” means that each transaction is settled individually on an urgent basis, without combining it with others.
RTGS is significant for medium-sized and large enterprises as it transfers money quickly and securely. Since, the funds are moved in real-time and settlement is final, there is minimal risk of delay or reversal.
What are the key features of RTGS payment system?
RTGS is designed for payments above 2 lakhs. This is the minimum amount you can transfer through RTGS. The RBI has not set any limit on the upper cap, but the banks may have their own individual limits.
Since December 2020, RTGS has been made available 24x7x365, so it can be used even after banking hours.
What are the timings and charges for RTGS?
There are no timing restrictions for the RTGS system. The payments are processed instantly, and the funds are credited within minutes.
Charges for RTGS- Online RTGS transactions are usually free, but branch-initiated transfers may charge between ₹25 and ₹50, plus GST.
What are the advantages of using RTGS?
RTGS transfers have no upper limit set by the RBI.
As the RTGS is regulated by the RBI, it is safe and secure.
RTGS serves as the best option for high-value and urgent transfers.
What are the disadvantages of using RTGS?
The RTGS payment system cannot be used for transfers below 2 lakhs.
RTGS payment can sometimes be costly if initiated from bank branches.
NEFT vs IMPS vs RTGS: Key differences
While all three payment systems, RTGS, NEFT, and IMPS, have the same purpose, that is, transferring money within the bank accounts in India, they differ in speed, cost, transfer limit, etc. Let's have a look at their differences-
Speed- Speed of the transfer is one of the biggest distinctions. While the RTGS and IMPS instantly process the funds, making the recipient receive the money within minutes, NEFT is usually slow. NEFT processes the payments in half-hourly batches, so the transfer can take up to hours to complete.
Transfer Limit- Transfer limit varies among the NEFT, RTGS, and IMPS. NEFT and IMPS can be used for small-value transfers as there is no limit on the minimum amount. But for the maximum amount, IMPS has a maximum limit of ₹5 lakh per transaction. RTGS is made for high-value payments, so the minimum limit set by the RBI is ₹2 lakh. There is no limit on the upper value.
Charges- Charges depend on the mode of transfer. If done online, RTGS, NEFT, and IMPS are usually free. But while doing it from any branch, charges may vary depending on the bank and the amount of transfer.
Also read: Best Banks in India to Receive International Payments
Here is a quick comparison table for your reference:
Feature | NEFT | IMPS | RTGS |
|---|---|---|---|
Speed | Half-hourly batches (~within 2 hrs) | Instant | Real-time |
Availability | 24×7×365 | 24×7×365 | 24×7×365 |
Minimum Limit | No limit | No limit | ₹2 lakh |
Maximum Limit | No RBI limit | ₹5 lakh (varies by bank) | No RBI limit |
Charges | Often free online; up to ₹25 + GST in branch | ₹2.50–₹25 (varies by bank) | ₹25–₹50 in branch; often free online |
Best For | Low-cost small to medium transfers | Instant small to medium transfers | Large, urgent transfers |
Which payment system is best for you- RTGS, IMPS, or NEFT?
There are three factors that decide your choice- urgency, amount, and cost.
Suppose you are sending out a small amount of money and do not mind waiting for hours to get it credited in your recipient’s account, then NEFT is the best choice for you. NEFT is usually convenient for payments like rent and utility bills, where there is no time pressure.
If you want the money to reach the recipient account instantly, for example, in any emergency or paying any merchant on the spot, then IMPS is the best option for you. IMPS works 24x7x375, even for tiny amounts, and is supported by almost all the banks.
For large transactions, usually above INR 2 lakhs, RTGS works the best. RTGS is mainly meant for business purposes, where the transaction is processed instantly and the amount gets credited within minutes.
How Infinity makes payments easier than NEFT, RTGS, and IMPS
NEFT, IMPS and RTGS work excellently for making domestic transfers. While they operate within the framework of the RBI, they still have transfer limits, processing delays, and restrictions for making international transfers.
Indian freelancers, exporters, or SMBs who wish to receive international payments from clients around the globe may not be able to use these systems because of their restrictions.
This is where Infinity is changing the game. Infinity makes the process of receiving international payments as easy as making a domestic transfer, like RTGS or IMPS.
A freelancer, exporter, or startup founder can receive international payments seamlessly, without facing the limitations of traditional banking.
You do not have to worry about NEFT batch transfer, IMPS per-transaction limit, or RTGS minimum transfer limit. Infinity helps you process the payment instantly, without any transfer limit.
Whether you are a freelancer receiving payments in USD or an Indian exporter receiving payments from a client in the UK, Infinity ensures you receive the amount within 24 hours, with the lowest rate in the market, that is, 0.5% (inclusive of all).
So what are you waiting for? Sign up with Infinity today, and start receiving international payments seamlessly.
FAQs
Can I use RTGS, IMPS, or NEFT on Sundays?
Yes, RTGS, NEFT, and IMPS are available 24x7, including weekends and public holidays.
Can I transfer INR 1 crore using IMPS?
No, IMPS has a per-transaction limit of INR 5 lakh. Use RTGS for higher amounts and instant transfer.
Which is the safest among RTGS, IMPS, or NEFT?
All three payment systems are regulated by the RBI, making all three of them equally safe.
