Fund transfers can be done in a number of ways, such as NEFT, IMPS, and RTGS, but each offers certain benefits and features of its own. But first, what exactly do IMPS and NEFT do? In this article, learn about the difference between IMPS and NEFT.
What is IMPS?
IMPS stands for immediate payment service. A real-time payment service is IMPS. One of the best online fund transfer options is frequently cited as IMPS. While some also offer SMS services, the majority of IMPS services are accessible online. The national payment corporation of India provides IMPS. It permits the transmission of money through a bank account or prepaid payment provider. Magnetic stripe cards or digital wallets can be the issuers of prepaid payments. You can make transfers via physical or online transactions, depending on your preferred method.
What is NEFT?
NEFT stands for national electronic funds transfer. NEFT is an online money transfer service that is comparable to IMPS. this is another fantastic online transfer funds option that is available in India and enables a one-to-one money transfer from one individual to another. NEFT requires banking information in order to use it, unlike IMPS. The service is not accessible to all banks. They must participate in the India NEFT transfer network.
IMPS Vs NEFT | Difference between IMPS and NEFT
- IMPS is primarily regulated by the NPCI, while NEFT is mostly governed by the RBI.
- NEFT is less flexible and inexpensive than IMPS.
- Most payments must be made online, IMPS payments can also be performed in person at bank branches.
- IMPS has a lower maximum amount for money transfers because it is intended for instant needs. The money transfer value is higher with NEFT, on the other hand, however, the minimum transfer value for each is re.1.
- NEFT takes a little longer than IMPS because it depends on bank business hours, IMPS is rapid and instant.
- IMPS is a direct transfer and one-to-one settlement technique while the NEFT uses pooling and clearance centers and settles funds in the beneficiary's account batch-wise.
- You can use UPI, ATM, mobile banking, internet banking, or mobile banking to make an IMPS payment. However, NEFT can only be performed through online banking if it is enabled.
- for the IMPS P2A transfer, you must add this. NEFT does not offer both choices, although IMPS does. You can use MMID to perform mobile-based/p2p payments for IMPS but not NEFT. For NEFT, you must include the necessary bank information, including the recipient's name, account number and mobile phone number, bank name, and IFSC code.
- The maximum limit per IMPS transaction is capped at INR 200,00 while there is no set maximum transaction limit for NEFT.
- The fact that NEFT service can be used both online and offline is a critical difference between NEFT and IMPS. The IMPS service is only accessible online.
- As long as the transaction is completed online, there are no fees associated with NEFT transfers. However, if the transfer is started at the bank branch, fees might be levied. IMPS transactions on the other hand are charged, and the specific bank determines the per transaction rate, which is normally minimal and ranges from INR 2.5 to INR 25+GST.
Conclusion: