IMPS (Immediate Payment Service) is significantly faster than NEFT (National Electronic Funds Transfer), providing instant, 24/7, real-time fund transfers. NEFT operates on a batch-based system, usually taking 30 minutes to a few hours for funds to be credited.
Each payment mode has its own benefits. NEFT is suitable for transactions which are not urgent and for any transfer amount. IMPS is for instant fund transfer 24/7 of amounts up to ₹5 lakh. RTGS is ideal for high-value transactions above ₹2 lakh which need to be processed instantly.
NEFT transactions are relatively slower than RTGS and IMPS transfers. The processing time for NEFT can take up to 2 hours. RTGS transactions are faster than NEFT, with funds typically being credited within 30 minutes. IMPS enables instant transactions, allowing for immediate fund transfers.
NEFT is a centralised payment system operated by the Reserve Bank of India (RBI), whereas IMPS is a money transfer service managed by the National Payments Corporation of India (NPCI). Both methods of fund transfer are safe and fall under the purview of the Reserve Bank of India.
Choose IMPS for higher-value transactions (up to ₹5 lakhs per transaction), making it suitable for urgent payments like bills or emergency expenses. Choose NEFT if you are transferring larger amounts without a limit imposed by the bank, as it is suitable for large transactions made during banking hours.
NEFT charges start from a minimum of Rupees 1 per transaction and go up to Rupees 25 per transaction. IMPS charges usually start from a minimum of Rupees 5 per transaction and can go up to Rupees 15 per transaction.
Synopsis: NEFT transactions can be initiated 24x7x365, with no restrictions on timing. NEFT settlements occur in half-hourly batches throughout the day. Transactions are typically completed within 30 minutes to one hour, though first-time transfers may take up to 2 hours.
Overview: NEFT enables secure fund transfers across India with no RBI-imposed limits, but individual banks set transaction caps ranging from ₹2 lakh to ₹1 crore. Understanding these limits helps you plan large payments, investments, and loan repayments effectively while avoiding transaction failures.
IMPS transactions up to ₹1,000 are not chargeable. From 1,000 to 10,000, one would have to pay ₹2.5+GST as IMPS charges. ₹10,001 up to ₹1 Lakh, and ₹1,00,000 – ₹2,00,000, charges of ₹5+GST, ₹15+GST are applicable, respectively.
Disadvantages of IMPS
The main disadvantage associated with NEFT is that it is a technical alternative for transferring of funds that customers might find difficult to navigate through initially. The funds are also exposed to the risks of cyber security threats.
Funds reach your beneficiary instantly.
The IMPS charge of HDFC Bank ranges between Rs. 5 to Rs. 15 plus additional GST.
The RBI does not impose charges for NEFT transactions, however, individual banks may set their own fees within limits established by the RBI. This service is available across India and can be used for various transactions like paying credit card bills or loan EMIs.
4) NEFT to registered beneficiary per day - up to Rs. 10 lakh./per transaction - up to Rs 5 lakh. (Newly added beneficiary — less than 24 hours old — the limit is Rs 25,000).
What is the limit for a Resident Individual for sending money to USA from India? According to the Liberalised Remittance Scheme (LRS) for money transfers overseas, there is an annual cap of US$250,000 or its equivalent on international fund transfers by any resident individual in a financial year.
Any transfer over $10,000 triggers a Currency Transaction Report (CTR) to FinCEN, but this doesn't mean you owe taxes — it's just for monitoring purposes. However, if the transfer represents income, a taxable gift, or a business transaction, you must report it when filing your taxes.
NEFT: Funds usually reflect within 1–2 hours (batch-based settlement). IMPS: Money is credited instantly, making it ideal for emergencies.
NEFT transfer timings (Old vs new guidelines)
Previously, under the old guidelines, NEFT was limited to specific hours on weekdays and Saturdays, with no service on Sundays or holidays. The new guidelines allow 24/7 processing, including holidays, significantly reducing transfer times.
Minimum RTGS Limit: Rs. 2,00,000 per transaction. Maximum RTGS Limit: Varies by bank and account type; personal accounts usually Rs. 10–50 lakh/day, corporate accounts can go up to crores.
Third Party Funds Transfer - NEFT. Transaction done through HDFC Bank Branches: Amounts Upto Rs 1,00,000 – Rs 2 + applicable GST. Amounts above Rs 1,00,000 - Rs 10 + Applicable GST.
Yes, you can transfer ₹5 lakhs in a single transaction through HDFC Bank using IMPS (Immediate Payment Service) via Account number and IFSC. HDFC Bank's official IMPS limits state that the maximum limit per transaction for IMPS using an account number is ₹5 lakhs.
Wire transfers, third-party apps, ACH transfers and checks can all move money between banks. Wire transfers are fastest but most expensive, while ACH transfers are free but slower.