Over the years, innovative technology has revolutionized Indian payment systems. Customers today have a wide choice of avenues to quickly transfer their funds to customers of other banks at low charges, known as inter-bank funds transfer. The table below summarises the key features of three main quick payment systems in India:
|Payment System||Description||Key Features|
|RTGS full form: Real-Time Gross Settlement|
|NEFT full form: National Electronic Funds Transfer.|
|IMPS full form: Immediate Payment Service.|
RTGS means Real Time Gross Settlement which is an electronic payment system managed by Reserve Bank of India that allows the interbank transfer of funds on a real-time basis. In RTGS, the fund transfer takes place on a real-time basis and it is one of the fastest interbank money transfer facility in India:
- The facility of money transfer is available only for domestic transactions between banks within the country.
- Customers initiating RTGS transfer are required to have IFSC code of the beneficiary bank, account number, name of the bank, account holder’s name.
- The receiving and initiating bank branches are required to be RTGS enabled for transaction processing.
- The beneficiary bank has to credit the recipient’s account within 30 minutes of receiving the fund’s transfer message.
- RTGS is allowed for large value transactions with a minimum transaction amount of Rs. 2 lakh.
- RTGS timings- The Funds transfer request through RTGS Net Banking mode can be made only from 08:00 am to 04:00 pm, from Monday to Friday and on Saturdays (excluding second and fourth).
- If the funds are not credited to the receiver’s account due to any reason, the funds will be returned to the originating bank within 1 hour or before the end of the transaction day.
- RTGS transactions can also be scheduled in advance within a timeframe of 3 working days. The individuals can use RTGS facility for payments for cash management, hedging, interest on loans, securities, suppliers, taxes, trade transactions, and trade settlement payment.
RTGS Charges (excluding GST)
Each bank is allowed to fix their own charges for RTGS transactions, the details of which are provided in the table below:
|Bank||Rs. 2 lakh to Rs. 5 lakh||Above Rs. 5 lakh|
|SBI – branch||Rs. 25||Rs. 50|
|SBI – Mobile banking||Rs. 20||Rs. 40|
|HDFC||Rs. 25||Rs. 50|
|ICICI||Rs. 25||Rs. 50|
|BoB||Rs. 28 – 33||Rs. 55 – 61|
|PNB||Rs. 25 – 30||Rs. 50 – 55|
|Kotak Bank||Rs. 25||Rs. 50|
|BoI||Rs. 5||Rs. 5|
|Canara Bank||Rs. 27 – 30||Rs. 52 – 55|
|HSBC||Rs. 25||Rs. 50|
- In RTGS, the fund transfer takes place on a real-time basis and it is one of the fastest inter-bank money transfer facilities available through banking channels in India. The beneficiary bank has to credit the recipient’s account within 30 minutes of receiving the fund’s transfer message. The minimum amount of transaction allowed is of Rs. 2 lakh and maximum RTGS limit per day is of Rs. 10 lakh as RTGS is meant for large value transactions
NEFT means National Electronic Fund Transfer which is a nationwide electronic payment system allowing the quick interbank transfer of funds. The transactions between banks are processed and settled in batches of one hour on netting off basis. Hence, the time to transfer the funds can range between 1-2 hours.
- This facility is provided by 63000 banks across the country and allows remittance to Nepal as well. It can also be used for payment of credit card dues.
- The settlement is not in real-time as RTGS but it is done on an hourly basis. The amount is credited in the beneficiary’s account within two hours.
- From 16 December 2019, NEFT is available 24×7.
- There is no NEFT limit on the minimum or maximum amount that can be transferred through NEFT.
- There is an upper limit of Rs. 50,000 per transaction for cash-based remittance. Such customers have to furnish full details including complete address, telephone number, etc.
- To transfer funds from remitting account to beneficiary account, a form needs to be filled with beneficiary details (account no., account holder name, IFSC code, amount to be transferred and account type). This form is available on all NEFT branches and can also be found online using internet banking and mobile banking services.
- The remitting bank starts the transaction and sends the message to NEFT central service. The service center takes the message and forwards it to the NEFT clearing center (controlled by RBI) with the next batch details available for the transaction. The clearing center sorts the transaction destination bank-wise and creates accounting entries to receive funds from remitting banks to transfer funds to the beneficiary bank. The destination bank receives a message from the clearing center to pass the credit to the beneficiary customer’s account.
- From 1 January 2020, there are no charges applicable for transferring money through NEFT.
IMPS means Immediate Payment Service was publicly launched on November 22, 2010 as an instant inter-bank electronic fund transfer service through mobile phones. Later, it has been extended to other electronic channels such as ATM, Internet Banking, etc. The IMPS helps you to access your bank account and transfer funds instantly and securely.
- It is managed by the National Payments Corporation of India (NPCI). The beneficiary account is credited immediately when a fund transfer request is made from your side.
- IMPS timings – This service is available 24×7, throughout the year including Sundays and any bank holidays.
- There is no minimum IMPS limit on transactions done through IMPS
- Banks have specified different maximum limits on per day transactions.
- IMPS fund transfer is secure and uses two-step authentication to perform transactions. The first step of security is your mobile number and second is� MMID. MMID means Mobile Money Identifier. It is a seven digit unique number which you get when you register for mobile banking at your bank branch. MMID along with your mobile number is required to transfer money through mobile banking or IMPS.
- Customers can receive SMS confirmation on their mobile number for every credit or debit in their account.
|Bank||Rs. 2 lakh to Rs. 5 lakh||Above Rs. 5 lakh||Maximum Limit per month||Maximum Limit per day|
|SBI||Rs. 5||Rs. 15||Rs. 2,00,000|
|HDFC||Rs. 5||Rs. 15||Rs. 2,00,000|
|ICICI||Rs. 5||Rs. 15||Rs. 2,00,000|
|BoB||NIL||NIL||Rs. 2,50,000||Rs. 50,000|
|PNB||Rs. 5||Rs. 6||Rs. 50,000|
|Citibank||NIL||NIL||Rs. 1,500,000||Rs. 2,00,000|
|Canara Bank||Rs. 5 (Rs. 5,000 to 25,000)||Rs. 10 (Rs. 25,000 – 50,000)||Rs. 50,000|
|Yes Bank||NIL||NIL||Rs. 50,000|