IMPS vs NEFT Time, Charges & Limits Explained

byPaytm Editorial TeamLast Updated: September 19, 2025
What is the difference between IMPS and NEFT

When it comes to transferring money in India, IMPS (Immediate Payment Service) and NEFT (National Electronic Funds Transfer) are two of the most widely used options. Both methods are secure and reliable, but they differ in terms of speed, availability, charges, and transaction limits. If you have ever wondered, “What is the difference between IMPS and NEFT fund transfer?”—this guide will give you a clear picture.

What is NEFT?

NEFT (National Electronic Funds Transfer) is a payment system introduced by the Reserve Bank of India (RBI) that enables secure one-to-one money transfers between bank accounts. Unlike IMPS, NEFT originally worked only during banking hours, but today it is available 24×7, including weekends and holidays, making it more convenient for users. Source: RBI

NEFT offers the following advantages for funds transfer or receipt:

  • 24×7 availability on all days of the year, including Sundays and bank holidays.
  • Near real-time fund transfer, as settlements are processed in half-hourly batches.
  • Pan-India coverage through a large network of bank branches across the country.
  • No need to visit the bank branch—remitters can use internet banking or mobile banking for initiating transfers.
  • Instant confirmation via SMS or email once the beneficiary’s account is credited.
  • Penal interest for delays in credit or return of transactions, ensuring accountability.
  • No RBI charges for banks, and no charges for savings bank account holders making online NEFT transactions.
  • Transaction charges capped by RBI to ensure affordability.
  • Can be used for multiple purposes like paying credit card bills, loan EMIs, inward foreign remittances, and more.
  • The transaction has legal backing.
  • Available for one-way fund transfers from India to Nepal

What is IMPS?

IMPS (Immediate Payment Service) is a real-time, instant electronic funds transfer system that allows customers to transfer money instantly, anytime and anywhere. Launched by NPCI (National Payments Corporation of India), IMPS is available 24×7, 365 days a year, including Sundays and bank holidays, making it one of the most convenient digital payment modes in India.

Unlike traditional banking transfers, IMPS works across multiple digital channels such as mobile banking, internet banking, ATMs, and even SMS banking, ensuring wide accessibility. Both banks and payment banks with RBI-approved mobile banking licenses can participate in the IMPS ecosystem—either as a remitter bank, beneficiary bank, or both. Source: NPCI

Key Advantages of IMPS:

  • Instant fund transfer: Money is credited to the beneficiary’s account in real time, usually within a few seconds.
  • High flexibility: Supports account-to-account, account-to-wallet*, and wallet-to-account transfers.
  • 24×7 availability: Works round the clock, including weekends and national holidays.
  • Wide accessibility: Can be accessed via mobile apps, net banking, ATMs, and SMS-based channels.
  • Transaction convenience: Eliminates the need to visit a bank branch.

*Wallet transactions depend on RBI guidelines and participating institutions.

IMPS Transaction Details

  • Time taken: Instant, real-time transfer within seconds.
  • Charges: Typically between ₹2.50 to ₹25 + GST, depending on the amount slab. Many banks, however, have waived these charges for online transactions.
  • Transaction limit: Up to ₹5 lakh per transaction (earlier limited to ₹2 lakh, revised by RBI, for all channels except SMS and IVR)).

IMPS vs NEFT: Key Differences

IMPS vs NEFT Availability

Both IMPS and NEFT are now available round the clock, 24×7 and 365 days a year. Earlier, NEFT was restricted to banking hours, but after RBI’s 2019 directive, NEFT too became a 24×7 service.

IMPS vs NEFT Charges

The cost of fund transfer is one of the most important factors when choosing between IMPS and NEFT. While RBI has set a cap on NEFT charges, individual banks have the flexibility to levy lower charges or even waive them for online transactions. IMPS, on the other hand, follows a slab-based charging system, though many banks now offer it free for digital transfers.

NEFT Charges (Maximum Capped by RBI)

The originating bank may charge customers for outward NEFT transactions, but the charges cannot exceed the limits prescribed by RBI:

  • Up to ₹10,000: Not exceeding ₹2.50 (+ GST)
  • Above ₹10,000 and up to ₹1 lakh: Not exceeding ₹5 (+ GST)
  • Above ₹1 lakh and up to ₹2 lakh: Not exceeding ₹15 (+ GST)
  • Above ₹2 lakh: Not exceeding ₹25 (+ GST)

Note: Many banks offer free NEFT transfers through internet and mobile banking for savings account holders.

IMPS Charges

  • Charges usually range between ₹2.50 to ₹25 (+ GST) depending on the transaction amount.
  • Several banks have waived IMPS charges for online and mobile banking transactions, making it cost-effective for customers.

IMPS vs NEFT Time Taken

  • NEFT: Funds usually reflect within 1–2 hours (batch-based settlement).
  • IMPS: Money is credited instantly, making it ideal for emergencies.

Which is Better: IMPS or NEFT?

When it comes to choosing between IMPS and NEFT, the decision largely depends on your needs and the type of transaction you want to make. Both systems are safe, reliable, and widely trusted, backed by RBI and NPCI, ensuring complete security of your funds.

  • If you are looking for instant, real-time transfers at any time of the day—even on weekends and holidays—IMPS is designed to give you that convenience. It’s perfect for urgent payments where time is critical.
  • On the other hand, NEFT offers a seamless way to transfer money for larger transactions, recurring payments, and even payments like credit card dues or loan EMIs. With its wide network of banks across India and capped charges, NEFT continues to be one of the most affordable and accessible modes of transfer.

Both IMPS and NEFT bring unique strengths to digital banking, and instead of competing, they complement each other. The right choice depends on whether your priority is speed, transaction size, or cost-effectiveness.

FAQs

What is the difference between IMPS and NEFT fund transfer?

NEFT works in batches and usually takes 1–2 hours, while IMPS is real-time and credits instantly.

Is IMPS available 24x7 while NEFT is not?

Both IMPS and NEFT are available 24x7 now. Earlier, NEFT was restricted to banking hours, but this changed in 2019.

What is the maximum limit for IMPS and NEFT?

IMPS has a maximum limit of ₹5 lakh per transaction, while NEFT has no RBI-defined limit.

Which is better, IMPS or NEFT?

IMPS is better for urgent, instant transfers, while NEFT is better for large or non-urgent payments.
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