IMPS (Immediate Payment Service) is significantly faster than NEFT, offering near-instantaneous, 24/7, 365-days-a-year fund transfers. While NEFT also operates 24/7, it processes transactions in batches every 30 minutes, usually taking 30 minutes to a few hours for the beneficiary to receive the funds.
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.
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.
NEFT: Funds usually reflect within 1–2 hours (batch-based settlement). IMPS: Money is credited instantly, making it ideal for emergencies.
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.
Is IMPS a better mode of transfer than NEFT and RTGS? IMPS is faster for small to medium-sized transactions, while RTGS is ideal for large, urgent transfers. NEFT works best for non-urgent payments.
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.
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.
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.
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.
Disadvantages of IMPS
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.
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).
HDFC IMPS Limit
The maximum HDFC IMPS transaction limit is ₹5 lakh per transaction per day. However, the IMPS limit for transfers using MMID through net banking and mobile banking is ₹5,000 per day.
The RTGS system is the one of the fastest interbank money transfer facility available through secure banking channels in India. RTGS is available on all days on 24x7x365 basis.
No, GPay operates through UPI, not NEFT. How can one check the status of a UPI or NEFT transaction?
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.
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.
Immediate Payment Service is an instant money transfer service through electronic media. With IMPS service, we help you access your Bank Account and transfer funds instantly.
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.
How Much Time NEFT Takes for Transactions? NEFT transactions are usually settled instantly or within 30 mins. The amount might be credited to the respective beneficiary account in a maximum of two hours. Following the RBI guidelines, the time of NEFT payment varies from one bank to another.
You can transfer large amounts of money, but transactions over $10,000, especially in cash or structured deposits, trigger mandatory reporting (like IRS Form 8300 or Bank Secrecy Act (BSA) reports), not necessarily taxes, to fight money laundering. Banks file reports for cash over $10k (CTR) or suspicious activity (SAR) if they see patterns to avoid reporting (structuring), which can flag accounts even for smaller amounts like $200 if part of a pattern.
Maximum Transaction Limit
As per RBI, the daily IMPS transaction limit is Rs. 5 Lakh for individuals. Your bank or payment service provider usually sets the maximum amount you can transfer through IMPS. Depending on the bank, it can range from ₹ 2 lakhs to ₹ 5 lakhs.