16 January 2025

IMPS Vs RTGS | Difference | Comparison

In today's digital age, electronic fund transfer with different online modes such as IMPS and RTGS. Both IMPS and RTGS are popular choice for transferring funds securely and swiftly. This blog will help you understand the fundamental difference between IMPS and RTGS. Lets understand the difference between IMPS and RTGS.

Difference method to transfer fund online

Their are three different methods by which money can be transferred online are mentioned below:

  • Immediate Payment Service (IMPS) - Instant transfer available for 24*7

  • National Electronic Funds Transfer (NEFT) - Scheduled transfer

  • Real-Time Gross Settlement (RTGS) - For high value - Same day transfer 

RTGS

RTGS was lunched in 2004, Unlike of RTGS and EFT operates on a real time basis, and transaction from your saving account are settled individually rather than in batches. RTGS transactions can be completed only during banking hours. RTGS is mainly used for higher value transfer that require immediate clearance.

Benefits of RTGS

  • RTGS is safe and secure system for funds transfer. 

  • The system is available for all day on 24*7.

  • The beneficiary need not visit bank branch for depositing the paper instruments. 

  • The transaction charge have been capped by RBI. 

  • The transaction has legal backing.

  • RTGS transaction/transfer have no amount cap cep set by RBI.

  • RTGS fund transfer helps organization to manage business capital efficiently.

IMPS


IMPS was, lunched in 2010, is an advanced and fast method for transferring funds. It is managed by NPCI. IMPS is known for its versatility and accessibility. IMPS is accessible 24*7, throughout the year, even on bank holidays. IMPS can be completed by using internet banking or mobile banking. 


Benefits of IMPS

  • IMPS is accessible even on bank holidays.

  • IMPS is safe and secure money transfer methods.

  • It is accessible even on bank holidays.

  • It is cost effective and simple to access as it incurs nominal fees. 

  • It is accessible even on bank holidays. 

  • IMPS provide immediate confirmation of the transaction to both the sender and receiver.

  • While using IMPS make instant transfer of money from saving account/current account. 

When to Choose IMPS and RTGS

IMPS and RTGS are popular convenient electronic fund transfer methods in India. IMPS. IMPS (Immediate Payment Service) allows real-time fund transfers between bank accounts 24/7, while RTGS (Real-time gross settlement) is used for high-value transactions with immediate settlement.


When Choose IMPS 


 IMPS (Immediate Payment Service) offer fastest money transfer among the three, providing real time transfer of fund 24*7.
  • IMPS (Immediate Payment Service) is available 24*7, including weekends and holidays. So you need to transfer funds at any time. 

  • It supports online transactions at any time. IMPS provide flexibility and convenience to online transactions. 

  • IMPS offer instant settlement for funds; it is suitable for instant transfer of any size of amount up to 2 lakh.

When Choose RTGS

RTGS (Real-Time Gross Settlement) is design for high value transaction needing real time settlement. 

  • RTGS (Real-Time Gross Settlement) is available 24*7, but availability can depend on bank working hours and location. 

  • RTGS (Real-Time Gross Settlement) provides instant fund transfers; it is suitable for immediate high-value transactions and real-time settlement in Immediate processing.

  • The maximum amount is designed for high-value transactions with a minimum limit of 2 lakh and no maximum cap. 

Difference between IMPS and RTGS


Regulatory body


IMPS is backed by the national payment corporation of India(NPCI), While in RTGS are mode to transfer are owned and operated by RBI. 


Minimum and Maximum Transfer Value


IMPS transaction can begin as low as Rs. 1 and are capped at RS. 5 Lakhs. On the other hand RTGS has a minimum transfer value of Rs. 2 Lakh and No maximum limit. 

Settlement type and Speed

IMPS also operates on one-on-one settlement basis, allowing for instantaneous transfers. While in RTGS s a one-on-one settlement system that ensures immediate fund transfer upon initiation.  


Service availability


IMPS is accessible 24/7, Whereas in the RTGS availability varies based on individual bank hours, which may restrict user's access to the service certain time of the day. 

Transaction charges

The charges for IMPS transaction may vary among different banks. In RTGS does not levy charges for inward transaction or online processes. The outward transaction charges range from up to 25 plus GST for transfer between Rs. 2 Lakhs to RS. 5 Lakhs and up to Rs. 50 Plus GST for transfers of Rs. 5 Lakhs and above.


Transaction Speed


IMPS enables instant transaction, allowing for immediate fund transfers. While in RTGS transaction are faster than NEFT, with funds typically being credited within 30 minutes. 

Reliability

IMPS is considered reliable and secure for fund transfers. RTGS is considered reliable and secure for fund transfers.


FAQ on Difference between IMPS and RTGS

1. Which is better, IMPS or RTGS?


If you need an instant transfer, IMPS is the best choice. For a same-day transfer with a few hours delay, NEFT is ideal. For immediate large transactions, go option for RTGS.


2. What is the limit for IMPS and RTGS?


While using the RTGS transfer amount above Rs. 2,00,000 and up to Rs. 20,00,000. For amounts less than Rs. 2,00,000, you can choose the NEFT fund transfer method. 


3. Which is faster: NEFT or RTGS?


RTGS is faster than NEFT for transferring money between bank accounts.


4. Are there any extra charges for an IMPS transfer?


Yes, IMPS transactions typically incur nominal fees, which vary by bank. 


5. Is RTGS chargeable?


Yes, RTGS transactions are chargeable, depending on the bank and the mode of transactions. 


IMPS VS RTGS


Explore more information:

  1. IMPS Vs NEFT
  2. NEFT Vs RTGS

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