NEFT / RTGS / IMPS

These are the three main ways to transfer money electronically between bank accounts in India.

TL;DR: NEFT, RTGS, and IMPS are electronic fund transfer protocols used in India. They govern batch transfers, real-time high-value settlements, and instant interbank payments, respectively.

Key Details:

• NEFT Batch Processing: Processed in hourly batches; has no lower or upper transaction amount limits
• RTGS Settlement: Real-time settlement intended for transactions exceeding ₹2 Lakhs
• IMPS Instant Transfer: 24/7 instant channel for mobile-initiated smaller payments up to ₹5 Lakhs
• Statement Codes: Commonly prefix bank narratives (e.g. NEFT-, RTGS-, IMPS-) for audit matching

NEFT (National Electronic Funds Transfer):

• Mechanism: Operates in hourly batches.
• Best for: Small to medium amounts where immediate transfer isn’t critical.
• Limit: No minimum or maximum limit for most banks.

RTGS (Real Time Gross Settlement):

• Mechanism: Real-time processing on an individual basis.
• Best for: High-value transactions (typically above ₹2 Lakhs).
• Limit: Minimum ₹2 Lakhs.

IMPS (Immediate Payment Service):

• Mechanism: Instant, 24/7 interbank electronic fund transfer.
• Best for: Immediate small transactions, often initiated via mobile apps.

In a bank statement, these are usually identified by codes like “NEFT-”, “RTGS-”, or “IMPS-” followed by a reference number or the recipient’s name.