Need to make some payments but unsure which to use – NEFT or IMPS? You’ve landed at the right place. Check NEFT vs IMPS charges while comparing the transfer limits. This way, you’d be able to choose your pick – IMPS or NEFT.
IMPS vs. NEFT
To understand the difference between NEFT and IMPS, please refer the table below:
|Full Form||National Electronic Funds Transfer||Immediate Payment System|
|Settlement of payments||Done in batches of 30 minutes||Amount debited & credited immediately|
|Transfer limit||No limit||Maximum Rs 2 lakhs|
|Speed of transfer||Within 30 minutes to 4 hours||Within seconds|
|Inward transfer charges||NIL||NIL|
|Outward transaction charges||Rs 2.50 to Rs 25 (based on the transaction amount)|
(+ applicable GST )
|Depends on the bank (sender’s bank)|
NEFT vs IMPS: Charges
RBI does not encourage banks to charge their customers for using NEFT. Due to this, there are no NEFT charges for inward remittances (transfers within your own bank accounts).
The following are the NEFT charges for outward remittance as per the RBI guidelines updated on 31st October 2022:
1) Rs 2.50 (up to Rs 10,000)
2) Rs 5.00 (Rs 10,001 – Rs 1 lakh)
3) Rs 15.00 (above Rs 1 lakh – Rs 2 lakhs)
4) Rs 25.00 (above Rs 2 lakhs)
(+ applicable GST)
Did You Know?
To boost digital payments, RBI has advised banks to not levy any charges from their savings bank account holders for NEFT funds transfers initiated online with effect from January 01, 2020.
Charges for carrying our fund transfers via IMPS differ as per the bank in which sender has the account. The below-mentioned are the IMPS charges of the top banks in India:
|Bank Name||IMPS Charges (per transaction)*|
|State Bank of India (SBI)||No Charges|
|Punjab National Bank (PNB)||Up to Rs 10 (up to Rs 12 when done at the branch)|
|HDFC Bank||Up to Rs 15|
|ICICI Bank||Up to Rs 15|
|Axis Bank||Up to Rs 10|
|Bank of India||Up to Rs 5|
|Kotak Mahindra Bank||Nil|
|Canara Bank||Up to Rs 15|
* (+ applicable GST)
What is NEFT?
NEFT Full Form: National Electronic Funds Transfer
Regulatory Authority: Reserve Bank of India (RBI)
NEFT is an electronic method of transferring funds from one bank to another bank account. Transfers are settled in half-hourly batches throughout the day. It takes around 30 minutes to 4 hours to credit the requested amount while the amount gets debited immediately.
NEFT is a 24×7 service when using netbanking. That said, NEFT can be used to transfer money at the branch as well. To know the at-the-branch NEFT timings, we advise you to please check your bank timings.
RBI has set up limits on NEFT charges for outward transaction. Banks in India cannot charge more than these limits. Also, NEFT charges are not mandatory, i.e. banks can choose not to charge it.
What is IMPS?
IMPS Full Form: Immediate Payments System
Regulatory Authority: National Payments Corporation of India (NPCI)
IMPS is an instant 24×7 electronic method of interbank funds transfers. Transfers are debited immediately. Via IMPS, transfers are credited into the beneficiary’s account instantly, i.e. within seconds.
IMPS charges differ from bank to bank.
IMPS vs. NEFT: Which is Faster?
When talking about the settlement speed of funds, IMPS is undoubtedly the faster medium.
While the amount is debited instantly in both modes of transfers, i.e. NEFT as well as IMPS, it takes approximately 30 minutes to credit this amount to the beneficiary’s account in the case of NEFT.
That said, amount is immediately credited to the beneficiary’s bank account via IMPS.
Also Read: IMPS vs NEFT vs RTGS
IMPS vs. NEFT: Transfer Limit
NEFT Limit: There is no NEFT limit standardized by the Reserve Bank of India (RBI). However, some of the banks do set out limit for using NEFT mode for transferring funds at the ATM, for example PNB has set Rs 2 lakhs/transaction as the NEFT limit through ATM.
Note: If you’re transferring an amount of Rs 2 lakhs or more, you can try RTGS. Find out which is better for you – NEFT or RTGS?
IMPS Limit: NPCI, the IMPS-regulating body, has set out a limit of Rs 5 lakhs per transaction.
Did You Know?
You can reduce your NEFT limit as well as IMPS limit as per your preference using the netbanking services.
Word to Remember
Outward Remittance: Transferring funds abroad.
Inward Remittance/Transfer: Transferring funds to one’s own accounts.
Visit the following links to know more about IMPS:
Also check NEFT processes for other banks from the table below:
|Axis Bank NEFT||HDFC NEFT||NEFT National Electronic Funds Transfer|
|Bank of Baroda NEFT||ICICI NEFT||NEFT vs RTGS|
|Bank of India NEFT||IDBI NEFT||SBI NEFT|
|Canara Bank NEFT||Indian Bank NEFT||Union Bank NEFT|
|Difference Between IMPS, NEFT & RTGS|
IMPS vs. NEFT: FAQs
It depends on two factors majorly – transaction amount and urgency. If the amount is less than Rs 5 lakhs and you need to transfer instantly, choose IMPS. Otherwise, you can go for NEFT as there is no limit on the transaction amount.
NEFT maximum transfer limit: None
IMPS maximum transfer limit: 5 lakhs
Inward transaction charges: NIL
Outward transaction charges: Rs 2.50 – Rs 25 (+ applicable GST)
Inward transaction means receiving of funds.
Outward transaction means transferring funds abroad.
IMPS charges depend on your bank. However, they usually do not go beyond Rs 15. SBI does not charge anything for IMPS transactions.
Yes. IMPS is 100% safe mode of transfer which is run and regulated by NPCI.
NPCI full form: National Payments Corporation of India. It is a regulatory body for UPI, IMPS, etc. and is a division of RBI.
The main difference between RTGS and NEFT & IMPS is the transfer limit. You cannot transfer an amount less than Rs 2 lakhs via RTGS. This is not the case with NEFT or IMPS.
Yes. NEFT payments can be carried at your branch. Just ensure that your branch is NEFT-enabled.
NEFT online window is open 24×7. For offline NEFT timings, please check your bank timings.
IMPS online window is open throughout the day.
Outward NEFT transactions attract charges and thus GST as well. Please note that there are no charges for inward transactions.