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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 DifferenceNEFT (National Electronic Funds Transfer) IMPS (Immediate Payment Service)
DefinitionThe 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 DeviceInternet, Website & Application
Vs
Internet, Website & Application
Information RequiredAccount Number & IFS Code
Vs
Account Number & IFS Code/ MMID
Fund Transfer TimeUsually, on the same day
Vs
Instant
Fund Transfer to abroadYes
Vs
Yes
Beneficiary Registration
Required
Yes
Vs
Yes/ No, if using Mobile Number & MMID
24 X 7 Money TransferNo
Vs
No
Cost of Fund TransferRs. 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 transactionsYes, possible
Vs
Yes, possible