IMPS vs NEFT: Full form, differences, charges and more

  • Published on: 25 Jan 2024
IMPS vs NEFT: Full form, differences, charges and more

Choosing between IMPS vs NEFT electronic fund transfer options depends on multiple factors. These two options serve the same goal of making convenient fund transfers but have many distinct features and benefits. 

Old-school fund transfer methods allow you to send and receive a higher amount through multiple channels. Therefore, many private and government agencies rely on these options for fund transfer.

Read on to learn more about NEFT vs IMPS differences and choose a convenient option.

What Do You Mean by IMPS and NEFT?

IMPS stands for Immediate Payments Service, which is an electronic payment facility established by the National Payments Corporation of India (NPCI). NEFT, on the other 

hand is an acronym for National Electronic Fund Transfer, launched by the RBI. 

Both these fund transfer options allow you to make interbank transactions nationwide. All you have to do is provide basic details of the beneficiary available, and you can choose from either option at your convenience. 

All You Need to Know About IMPS vs NEFT 

Here are a few essential pointers you must know to understand the features of IMPS vs NEFT.

  • Availability: Both mechanisms of fund transfer are available round the clock, including bank holidays 
  • Timing: IMPS facility allows real-time transfer, but NEFT conducts transfer in half-hourly batches 
  • Transfer Limit: The maximum amount for IMPS is ₹5 lakhs, but NEFT has no upper limit 
  • Transaction Charges: Know that IMPS vs NEFT charges are levied based on the bank’s policy 
  • Details Required: IMPS allows transfer using the Mobile Money Identifier (MMID) and account details, but for NEFT, you only need account details  

In addition, here is a tabulated overview of IMPS vs NEFT: 

Particular IMPS NEFT
Mode of transfer Online Offline and online
Settlement Type Real-time Half-hour
Time taken Instant Batches of half-hour
Limit Minimum: ₹1 Maximum: ₹5 lakhsMinimum: ₹1 Maximum: As per the bank’s discretion 
Charges  Up to ₹10,000: ₹2.5 + GST₹10,001 – ₹1 lac: ₹5 + GST₹1 lac – ₹2 lakhs: ₹15 + GST Up to ₹10,000: ₹2.5 + GST₹10,001 – ₹1 lac: ₹5 + GST₹1 lac – ₹2 lakhs: ₹15 + GST Above ₹2 lakhs: ₹25 + GST 

How to Transfer Funds Using IMPS and NEFT

To initiate a fund transfer with IMPS, follow these steps. 

  • Step 1: Choose the net or mobile banking option 
  • Step 2: Select ‘Fund Transfer’
  • Step 3: Opt for ‘IMPS’ 
  • Step 4: Select ‘Add beneficiary’ 
  • Step 5: Enter the required details and amount
  • Step 6: Submit the details 
  • Step 7: Verify the transfer with OTP

If you choose IMPS, here are the steps you must follow.  

  • Step 1: Log in to your net banking account 
  • Step 2: Click on ‘Add beneficiary’
  • Step 3: Enter beneficiary details, such as name, account type, account number, and IFSC information
  • Step 4: Select the NEFT option 
  • Step 5: Enter the amount and submit

Also Read: Difference Between NEFT and RTGS

Once you add the new beneficiary, you must wait for a period of 30 minutes before proceeding ahead. However, there is no such waiting time for IMPS. So, consider this criterion when choosing IMPS vs NEFT. 

Which is Better: IMPS vs NEFT

While both options have equal security and reliability, you must consider all the factors, such as time taken, amount and charges, when comparing IMPS vs NEFT. You can choose either option to make a transaction for up to ₹5 lakhs. But for a higher amount, you can opt for NEFT. 

Since the charges for both are the same, you will pay an equal fee for both facilities. However, you must consider the processing time, as you may have the advantage of instant transfer via IMPS. Nevertheless, if it’s not an urgent payment, you can also choose NEFT.

In conclusion, you can choose from either option to make a fund transfer depending on the urgency and your fund transfer limit. However, if you require urgent funds for any financial emergency or otherwise, you can apply at Fibe. 

With Fibe Personal Loan Online, you can get up to ₹5 lakhs quickly. A 100% digital application process, affordable interest rates and convenient tenure options are a few added perks you stand to enjoy when you opt for Fibe. Download the Personal Loan App or visit our website to apply now!


Is IMPS chargeable?

Yes, banks have variable charges for IMPS fund transfers depending on your amount. However, these charges only apply for outward IMPS transactions, and inward IMPS transfers have no fees. 

Is NEFT free?

No, you must pay some fees to facilitate NEFT transactions, which depends on your transfer amount. 

What is the limit of IMPS?

You can send a minimum ₹1 up to ₹5 lakhs through IMPS. However, the upper limit for fund transfers is subject to bank policy. 

Does IMPS have a daily limit?

Effective February 1, 2022, the daily maximum fund transfer limit for IMPS is up to ₹5 lakhs.


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