‘IMPS’ means Immediate Payment Service. It is an electronic fund transfer mechanism of the Indian banking system. It lets you transfer funds to a payee’s bank account instantly. This service is available for the customers 24*7.
‘NEFT’ means National Electronic Funds Transfer (NEFT). It is also an electronic fund transfer mechanism of the Indian banking system. NEFT service is also available 24*7 to its customers and it transfers your funds to payees’ in batches.
What are the differences between IMPS and NEFT
Below we discuss comprehensively IMPS vs NEFT:
- Details: The Immediate Payment Service (IMPS) is built on the National Financial Switch network and is managed by the National Payments Corporation of India (NPCI). While the National Electronic Fund Transfer (NEFT) is managed by the Reserve Bank of India. The IMPS was launched in 2010 while NEFT was brought forth in the year 2005.
- Process: As aforementioned, IMPS transfers your money instantly into the beneficiary’s account. The beneficiary’s bank has around half an hour to credit and shows the transferred money to the payee. Meanwhile, NEFT works on a net and batch basis. NEFT transfer mechanism makes payments in batches. Since NEFT settles on a one – to – one basis, it transfers funds between two enabled bank accounts through electronic messages. NEFT isn’t a real-time fund transfer solution like IMPS. As mentioned, it transfers funds in batches and that too only in its business hours.
- Timings: IMPS and NEFT, both, can be used 24 x 7. The NEFT payment system has been made available on a round-the-clock basis i.e., for 24×7, 365 days. It is also available on Sundays, bank off-days and bank holidays altogether.
- Usage through Net-banking:
1. To carry out an IMPS transfer through net-banking, you need to log into your bank’s net-banking portal; after that, you need to add an IMPS beneficiary by inputting the beneficiary’s account no., account type, IFSC Code, name and contact details; after your bank confirms that the intended beneficiary has been included, you need to go to the tab of IMPS Fund Transfer. You then need to select the beneficiary to whom you want to transfer funds. Once you do that the beneficiary’s account details will appear. You then need to enter the Amount and Remarks. Verify the payment and the transaction will be complete. Since this is IMPS, funds will be transferred immediately.
2. To carry out an NEFT transfer through net-banking, you need to log into your bank’s net-banking portal; after that, you need to add an NEFT beneficiary by inputting the beneficiary’s account no., account type, IFSC Code, name and contact details; after your bank confirms that the intended beneficiary has been included; you then need to go to NEFT Fund Transfer tab. Subsequently, you need to select the beneficiary to whom you want to transfer funds. Resultantly, the beneficiary’s account details will appear. You then need to enter the transfer Amount and Remarks. Entering remarks is optional. Your NEFT funds will reach the beneficiary in the next hourly batch transfer.
- Usage through Mobile-banking:
1. To carry out an IMPS transfer through mobile banking, you need to log into your bank’s mobile banking application, then you need to go to the Send Money/Fund Transfer tab to visit the IMPS option. After that, you will have to add the beneficiary in IMPS platform, if not already added (the process to add the beneficiary is described above). After the bank adds your IMPS beneficiary, you need to enter Beneficiary mobile no., Amount and the beneficiary’s Mobile Money Identifier (MMID). The application will then ask for your Mobile PIN (MPIN) to authenticate the transfer. Once you verify your Mobile PIN, your money will be transferred. The bank will then send you a confirmation text message mentioning the transaction no. Since this is IMPS the funds will be credit instantly into the payee’s bank account.
2. To carry out an NEFT transfer through mobile banking, you need to log into your bank’s mobile banking application, then add the beneficiary in NEFT platform, if not already added. For adding the beneficiary you need to input the beneficiary’s account no., account type, IFSC Code, name and contact details; after your bank confirms that the intended beneficiary has been included, you need to go to Send Money/Fund Transfer tab and then go to the NEFT option. Then you need to select the beneficiary to whom you want to transfer funds. Subsequently, the beneficiary’s account details will appear. You then need to enter the Amount and Remarks. Once you verify the payment settlement, the funds will be transferred in hourly batches.
- Transaction Charges: The transactional charges for NEFT and IMPS also differ. NEFT and IMPS charges are decided on the bank’s discretion. 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. However, the RBI has removed the service charges applied on online NEFT transactions initiated via the internet and/or mobile banking.
- Transaction Limit: The minimum transaction value of NEFT and IMPS transactions usually is Re. 1. However, the maximum limit for NEFT varies from bank to bank; it usually can go up to Rupees 10 lakh per transaction. The maximum transfer limit of funds through IMPS can go up to Rupees 2 lakh in a day.
Which banks offer NEFT and IMPS services
The banks which are offering NEFT and IMPS services as of date are: Andhra Bank, Allahabad Bank, Adarsh Co-Operative Bank Ltd., Axis Bank, Bandhan Bank Ltd., Bank of India, Bank of Baroda, Bassein Catholic Co-op Bank, Bank of Maharashtra, Canara Bank, BNP Paribas, Central Bank of India, Catholic Syrian Bank, City Union Bank, Citibank, Cosmos Co-operative Bank, Corporation Bank, Development Bank of Singapore, Dena Bank, Dhanalakshmi Bank, Development Credit Bank, Federal Bank, Dombivli Nagarik Sahakari Bank, HSBC, HDFC Bank, IDBI Bank, ICICI Bank, Indian Overseas Bank, Indian Bank, ING Vysya Bank, IndusInd Bank, Janata Sahakari Bank, Pune, Jammu & Kashmir Bank, Karur Vysya Bank, Karnataka Bank, Kerala Gramin Bank, Lakshmi Vilas Bank, Kotak Mahindra Bank, Nainital Bank, Mehsana Urban Co-operative Bank, NKGSB Co-operative Bank, Pragathi Krishna Gramin Bank, Oriental Bank of Commerce, Punjab and Sind Bank, Punjab and Maharashtra Co-op Bank, Rajkot Nagrik Sahkari Bank Ltd, Punjab National Bank, Saraswat Bank, RBL Bank, Standard Chartered Bank, South Indian Bank, State Bank of Hyderabad, State Bank of Bikaner and Jaipur, State Bank of Mysore, State Bank of India, State Bank of Travancore, State Bank of Patiala, Syndicate Bank, Thane Janata Sahakari Bank, Tamilnad Mercantile Bank, The A.P Mahesh Urban Co-op Bank, UCO Bank, The Greater Bombay Co-op Bank, Union Bank of India, Vijaya Bank, United Bank of India and Yes Bank. This list is subject to change.
Are there any other electronic fund transfer platforms other than NEFT and IMPS
Yes, an electronic fund transfer platform other than National Electronic Funds Transfer (NEFT) and Immediate Payment Service (IMPS) is Real-time gross settlement (RTGS). RTGS transfers funds in real-time which means there is no waiting period while transferring funds. It doesn’t bundle your fund transfer settlement with other fund transfers. Through RTGS, your funds are not transferred in batches like they are in NEFT. With RTGS, your funds are not clubbed with payments of other users; your funds are transferred individually and they end up in your beneficiary’s account faster than NEFT transfers. The RTGS window, just like NEFT and IMPS, is open for 24×7, 365 days.
What to consider before making an NEFT or IMPS transfer
There are many factors to consider before transferring funds through NEFT and IMPS. Some of them are Timings, Transaction charges and transfer network. Let’s discuss each individually:
- Timings: If you want to make an instant transfer, then choose IMPS. You can make NEFT transactions but the transfers are successfully credit after about 2 hours.
- Charges: NEFT and IMPS both charge the payer for sending funds. However, NEFT and IMPS don’t charge the payee for receiving funds. NEFT and IMPS transaction charges differ from bank to bank and their limits are provided in the article above.
- Transfer Network: The payer needs to check whether the beneficiary is part of the NEFT or IMPS network as all banks or all branches across India might not be a part of this network.