IMPS is generally better for immediate, small-to-medium, 24/7 transfers (up to ₹5 lakh), while NEFT is better for larger, non-urgent transactions with no upper limit. IMPS offers instant, real-time settlement, whereas NEFT operates in half-hourly batches.
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.
Disadvantages of IMPS
Usually, IMPS is free of charge in some banks for lower transaction amounts or if it is done through net banking. However, most banks levy nominal fees for IMPS transactions above a certain limit for branch-based IMPS transfers. The Reserve Bank of India has set a daily transaction limit of ₹5 lakh for IMPS.
Some banks do not charge for IMPS when done online but some banks charge from ₹2.5 to ₹15 per transaction when done either online or offline. However, NEFT is free when done online and the charges range from ₹2.5 to ₹25 when done from bank branch.
What is the IMPS Transaction Limit? According to the RBI, the daily transfer limit through the IMPS is ₹5 lakh. Still, the amount you can transfer may vary depending on the bank or your payment service provider, which will be between ₹2 lakh and ₹5 lakh.
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.
Revised IMPS Charges for Online Transactions
From August 15, 2025, online IMPS transfers up to ₹25,000 will remain free of charge. However, transactions above this amount will attract nominal fees as follows: Above ₹25,000 and up to ₹1,00,000: ₹2 + GST. Above ₹1,00,000 and up to ₹2,00,000: ₹6 + GST.
NEFT is best suited for low-value transactions and operates in batches while RTGS is used for high-value transactions and settles payments in real-time. The two systems differ in terms of fees, minimum transfer amounts, and settlement speed.
Depending on the bank you have an account with, the following charges are typically applicable for IMPS transactions:
Secure: IMPS uses two-factor authentication and a one-time password to ensure the safety of your transactions. This provides a high level of security for your funds.
This is because NEFT groups multiple transactions and processes them together at specific intervals. While this makes NEFT slower than IMPS, it's often the preferred option for large, non-urgent payments where cost efficiency is more important than speed.
Failed IMPS transaction – What happens next
A failed transaction can occur due to several reasons, such as incorrect account details, server issues, or insufficient funds in the sender's account. When a transaction fails, the amount is usually reversed into the sender's account within a few working hours.
NEFT, introduced by RBI, expedites and simplifies money transfers between banks. NEFT operates on a deferred net settlement (DNS basis) and settles transactions in secure batches, ensuring efficient fund transfers. NEFT offers 24×7 fund transfer availability, enhancing user convenience.
Secure transactions: NEFT transactions are conducted on a secure network, reducing the risk of fraud or theft associated with physical cash transactions. Accuracy: The electronic nature of NEFT reduces the chances of errors in transactions, as all details are verified electronically.
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.
IMPS is faster for small to medium-sized transactions, while RTGS is ideal for large, urgent transfers. NEFT works best for non-urgent payments.
Transfers can be made in multiples of Rs 2 lakh, up to the chosen TPT limit, with a maximum of ₹50 lakh. Security Measures: For security reasons, transfers to newly added beneficiaries are restricted to ₹50,000 in total, whether in full or in parts, during the first 24 hours after the beneficiary is added.
The daily threshold for IMPS transactions in India stands at ₹5 lakh. Individuals can transfer this amount using internet banking, mobile banking or via their account number.
IMPS transactions through net banking or mobile banking (including YONO) are entirely free, regardless of the transaction amount.
The fees for SBI IMPS service when used online are free. In case you opt to visit the bank ranch for the same, charges will be applicable based on the transaction amount ranging from Rs. 2 to Rs. 20 plus GST.
In terms of limits, IMPS has a maximum limit per transaction of INR 5 lakhs, whereas NEFT is not subject to any maximum limit, and thus it is better for large or high-value transfers.
1) Payment Gateway transaction limit is up to 10 lakh per day / per transaction. 2) Own account fund transfer — No limit (up to the available balance in debit account). 3) IMPS to registered beneficiary - up to Rs 5 Lakh per day/per transaction.
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.