NEFT (Net electronic fund transfer):
1. It is a fund transfer mechanism under which the transactions can be initiated and settled from the bank account of one particular bank to another bank’s account. The NEFT transactions can be carried out in bulk and repetitively.
2. NEFT usually takes 2 hours (Subject to cutoff timings and batches) to settle the transaction.
3. The NEFT system used for minimum value transactions. The minimum amount to be remitted through NEFT is Rs 1/-. The maximum limit is Rs 2 lakh per day.
4. NEFT can be offline or online. The charges for NEFT vary from Rs.2.50 to Rs.50 (Incl. GST) based upon slabs fixed. Cost effectiveness is the advantage over NEFT.
5. NEFT service unavailable on Sunday and bank holidays.
RTGS (Real time gross time settlement):
1. It is a fund transfer mechanism wherein transfer of money takes place from one bank to another on a real time(No waiting period) and on gross settlement(transaction settled on one to one basis) basis.
2. The RTGS system is primarily meant for large value transactions. The minimum amount to be remitted through RTGS is Rs 2 lakh. The maximum limit is Rs 10 lakh per day.
3. RTGS can be offline or online. The charges for RTGS vary from Rs.25 to Rs.50 (Incl. GST) based on slabs fixed. Immediate settlement is the advantage over RTGS.
4. RTGS Service unavailable on Sunday and bank holidays.
IMPS (Intermediate Mobile Payment Service):
1. It is a popular and fastest methods of fund transfer.
2. Similar to NEFT, IMPS also allows transfer of low value-funds from Rs.1/- to Rs.2,00,000/-, but what makes it unique is, it immediately settles the funds.
3. IMPS has only online facility (Internet and online banking services) and charges for the transfer will vary from bank to bank.
4. IMPS service available on Sunday and bank holidays also. And it works 24/7 allowing fund transfer any time of the day.
All the above methods have a similar process. You first have to add the beneficiary bank account to your account first. It will take few hours to activate and once activated, you can initiate fund transfer to the desired account. The charges given above applicable on slab basis and are vary from bank to bank.