Difference between NEFT, RTGS, ECS and IMPS


Do you know the difference between NEFT, RGTS, ECS and IMPS? Many times we listen to these words but probably we don’t know the exact meaning. The system that enables electronic transfer of funds is NEFT, RTGS, ECS and IMPS.

Remember the days when you need to go to the bank to deposit cheque, stand in the long queue waiting for the token number. All these has become history today. Now you can transfer money online with the click of a button using NEFT, RTGS, ECS and IMPS. All these words are used interchangeably by the people however, there is a thin line between all these. Let’s take a look at the difference between NEFT, RTGS, ECS and IMPS.

What is the difference between NEFT, RTGS, ECS and IMPS?

NEFT – National Electronic Funds Transfer

NEFT is an acronym of National Electronic Fund Transfer. NEFT is like defer payment system. Under NEFT funds are transferred in batches from one bank to other. Whenever individual transfer money from his account to his friends/relative account fund transfer does not take place immediately it will be done in settlement cycle usually 60 minutes.

For more information on NEFT Click here.

RTGS – Real Time Gross Settlement

RTGS is an acronym of Real Time Gross settlement. The real-time gross settlement is an instantaneous method of fund transfer. Using this method funds can be transferred on real-time basis between the banks. RTGS is the faster way for fund transfer. RTGS is a preferred method for fund transfer by many corporates. The RTGS system is preliminary used for high-value transactions. The minimum amount remitted using RTGS is 2 lakh. There is no upper ceiling for RTGS transactions.

For more information on RTGS Click here.

ECS – Electronic Clearing Services

ECS is an acronym of Electronic Clearing Services. ECS is a mode of electronic fund transfer from one bank account to another bank account using services of a clearinghouse. This service is used for the bulk money transfer from one account to many accounts or vice-versa. This can be used for payment as well as collection purpose. In other words ECS Credit and ECS Debit.

Example, where ECS can be used, are dividend distribution, salary, pension, EMI payment or utility bill collection, house tax, water tax etc.

IMPS – Immediate Payment Services

IMPS is an acronym of Immediate Payment Services. IMPS is the mode of fund transfer by mobile phone services. Under IMPS, customer uses mobile phones as a medium of fund transfer. All applications used for mobile fund transfer use IMPS. This facility is given by NPCI (National Payments Corporation of India).

Timing of NEFT, RGTS and IMPS

NEFT – 8 AM to 7 PM from Monday to Friday. 8 AM to 1 PM on Saturday

RGTS – 8 AM to 8 PM from Monday to Saturday (Except Second and Fourth Saturday)

IMPS – Available 24×7

Transfer Limit NEFT, RGTS and IMPS

NEFT – Minimum 1 Rupee. Maximum 10 Lac

RGTS – Minimum 2 Lac. Maximum No limit

IMPS – Minimum 1 Rupee Maximum 2 Lac

fund transfer

Advantage of NEFT, RGTS and IMPS

  • Does not require the physical presence of individual
  • No requirement of physical cheque or demand drafts
  • More Secure
  • Confirmation of Transfer by SMS or by e-mail
  • Anywhere access – from home, office, mobile
  • Faster almost real-time money transfer

Hope you have now understood the difference of various electronic fund system available in India. So let’s make use of this facility in a secure way.

Article by Raviraj

Raviraj is the man behind moneyexcel.com. He is graduate in finance, engaged in blogging since 7 years. Moneyexcel blog is ranked as one of the Top 10 Personal Finance Blog in India. He is not affiliated with any financial product, service provider, agent or broker. The purpose of this blog is to spread financial awareness and help people in achieving excellence for money. Please note that the views expressed on this Blog/Comments are clarifications meant for reference and guidance of the readers to explore further on the topics. These should not be construed as investment advice or legal opinion.

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  1. Ak nevagi says:

    Sir imps ki limit kitni ha KYa jayda imps hone se income tax lagega

  2. MANISH PANDEY says:

    Nice article sir

    Kaya aap mughe bata sakate hai ki NEFT ke aantargat maximum limit fix hai ya nhi

  3. Rocky says:

    Rtgs timings are changed 2 and 4 Saturday off and 1,3 and 5 Saturday full day.

  4. Srini says:

    Nice Article Sir … Good keep it up !! 🙂

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