Difference Between NEFT and IMPS
NEFT is an abbreviation for "National Electronic Funds Transfer". The NEFT is a nation wide payment system facilitating one-to-one funds transfer. It operates on a deferred net settlement (DNS) basis and settles transactions in batches. The settlement takes place with all the transactions received before a certain cut-off time. NEFT is not available on the bank holidays, RBI holiday and Sunday.
IMPS is an abbreviation for "Immediate Payment Service". It is an instant interbank electronic fund transfer service that helps you access your bank account and transfer funds immediately and securely. It can be done through various channels such as ATM, Mobile Phones, Internet Banking, etc. The transferred money is credited to the beneficiary account instantly. This is facility was introduced in 2010 by National Payments Corporation of India (NPCI).
There are many differences between NEFT and IMPS as listed in the following table which would help you choosing between the two:
NEFT Vs IMPS
| Basis of Difference | NEFT (National Electronic Funds Transfer) | IMPS (Immediate Payment Service) | |
|---|---|---|---|
| Definition | The system of electronically transfer of funds from one bank or bank branch to another bank or bank branch | Vs | The system of an instant real-time inter-bank electronic funds transfer in India |
| Fund Transfer Limit (Rs.) | No Limit | Vs | 2 Lakh per day |
| Required Device | Internet, Website & Application | Vs | Internet, Website & Application |
| Information Required | Account Number & IFS Code | Vs | Account Number & IFS Code/ MMID |
| Fund Transfer Time | Usually, on the same day | Vs | Instant |
| Fund Transfer to abroad | Yes | Vs | Yes |
| Beneficiary Registration Required | Yes | Vs | Yes/ No, if using Mobile Number & MMID |
| 24 X 7 Money Transfer | No | Vs | No |
| Cost of Fund Transfer | Rs. 2.50 to Rs. 25 plus taxes | Vs | Rs. 5 to Rs. 15 plus taxes |
| Alert sent after money collection | No | Vs | No |
| Payment gateway involvement | Yes | Vs | Yes |
| Banks offering payment method | Almost all banks in India | Vs | Almost all banks in India |
| E-Commerce transactions | Yes, possible | Vs | Yes, possible |