Difference between NEFT RTGS IMPS and UPI—Which One Should You Use?
When it comes to transferring money digitally in India, there are too many options that can make you confused— like NEFT, RTGS, IMPS, and UPI. Every option has the same purpose of sending money from one bank account to another but differs in speed, transaction limits, availability, and costs. In this blog, I’ll guide you through the difference between NEFT, RTGS, IMPS, and UPI, compare them in detail, and try to help you decide which one you should use for your specific needs.
1. What are NEFT, RTGS, IMPS, and UPI?
Before doing the comparison, let’s quickly understand what each term means.
NEFT (National Electronic Funds Transfer)
NEFT (National Electronic Funds Transfer) is a nationwide electronic payment system introduced by the Reserve Bank of India (RBI) that enables one-to-one funds transfer between banks. Transactions are processed in half-hourly batches, allowing customers to send money securely and efficiently throughout the day.
Key Features:
Availability: NEFT has operated 24×7, including weekends and holidays, since December 2019.
Settlement: Funds are settled in batches every 30 minutes.
Ideal for small– to medium-value transfers, making it suitable for everyday banking needs such as bill payments, salary credits, and personal transfers.
NEFT offers a reliable and convenient way to transfer funds across all banks in India with wide accessibility and quick processing time.
RTGS is the fastest way to transfer large amounts between banks in real time. Unlike NEFT, the funds are settled immediately on a gross basis, meaning the transaction happens instantly without waiting for a time.
Key Features:
Availability: RTGS Also operated 24×7 since December 2020
Settlement: Real-time and continuous
Ideal for: Large value transactions (₹2 lakh and above)
IMPS (Immediate Payment Service)
IMPS is an instant, real-time interbank transfer service accessible 24/7 through mobile, internet banking, and ATMs. It’s fast and available round the clock, even on holidays.
Availability: 24×7, including holidays.
Settlement: Your amount will be a real-time instant transfer.
Ideal for: Small value transfers with instant credit.
UPI (Unified Payments Interface)
India has UPI, a revolutionary payment system launched by NPCI that allows instant money transfer between bank accounts using mobile phones. It’s the most popular digital payment method today, requiring just a Virtual Payment Address (VPA) instead of account details.
Availability: You can use it 24×7, 365 days.
Settlement: Instant real-time.
Ideal for everyday payments like for groceries, shopping, & small- to medium-value transfers.
NEFT vs RTGS vs IMPS vs UPI: Key Differences
Feature | NEFT | RTGS | IMPS | UPI |
Transfer Speed | Batch-wise (up to 30 mins) | Real-time instant | Real-time instant | Real-time instant |
Availability | 24x7 (including holidays) | 24x7 (including holidays) | 24x7 (including holidays) | 24x7 (including holidays) |
Minimum Transaction Limit | No minimum | ₹2 lakh | No minimum | No minimum |
Maximum Transaction Limit | Usually ₹10 lakh (varies bank-wise) | No upper limit but usually bank-dependent | ₹2 lakh (varies bank-wise) | ₹1 lakh per transaction (varies by bank/app) |
Charges/Fees | Usually free or nominal | Usually free or nominal | Usually free or nominal | Mostly free |
Mode of Transfer | Requires bank account details | Requires bank account details | Requires MMID/Account details | Uses Virtual Payment Address (VPA) |
Best Used For | Medium value transfers | Large value transfers | Quick small value transfers | Daily payments & peer transfers |
2. Which is faster: NEFT, RTGS, IMPS, or UPI?
When you are choosing a payment method, speed is a major factor in transfer.
RTGS and IMPS offer instant transfer of funds, so your money reaches the receiver’s account immediately.
UPI also processes payments instantly and is very convenient & simple via mobile UPI apps.
NEFT used to work only in batches during banking hours but now works 24×7 with settlement every 30 minutes, making it faster than before but not instant.
If your priority is speed and convenience, IMPS or UPI is usually the best option, especially for smaller amounts. For large-value instant payments, RTGS is the preferred choice.
3. How to Use NEFT, RTGS, IMPS, and UPI?
How to Use NEFT & RTGS
You can process NEFT and RTGS transactions via:
Your bank’s internet banking portal or through a mobile app.
You can visit a bank branch & fill out a funds transfer form.
You can also use an ATM in some cases.
You need the recipient’s:
Account number.
Bank IFSC code.
How to Use IMPS
IMPS can be accessed through
Mobile banking apps
Internet banking
SMS banking (if supported)
ATMs
You can transfer money using
Mobile Money Identifier (MMID) and mobile number
Account number and IFSC code
Aadhaar number (in some banks)
How to Use UPI
UPI is available through multiple mobile apps like Google Pay, PhonePe, Paytm, BHIM, and your bank’s own app.
To send money:
Open the UPI app on your mobile.
- Tap on Send Payment.
Enter recipient’s VPA (example: name@bank).
Enter the amount and confirm payment with UPI PIN.
No need to remember account numbers or IFSC codes, which makes UPI a very user-friendly & instant money transfer method.
Also Read: Best UPI Apps in India 2025—Features, Limits & Safety Tips (PhonePe, Google Pay, Paytm, BHIM & More)
4. Transaction Limits of NEFT, RTGS, IMPS & UPI
NEFT: In NEFT there is no minimum limit; the maximum limit depends on the bank, usually ₹10 lakh per transaction.
RTGS: There is a minimum limit of ₹2 lakh, but no fixed maximum limit, but some banks could have their own limits.
IMPS: You can transfer up to ₹2 lakh per transaction in IMPS (limits may vary slightly by bank).
UPI: UPI usually has ₹1 lakh per transaction, but daily limits may vary by bank or app.
5. NEFT, RTGS, IMPS, UPI Charges and Fees
In most cases, banks do not charge customers for NEFT, RTGS, IMPS, or UPI transactions, especially for small amounts. However, some banks may impose nominal fees:
NEFT & RTGS: RBI has waived charges on inward transactions, but banks may charge for outward payments.
IMPS: Usually free or very low fees.
UPI: Generally free; no charges for peer-to-peer transactions.
Always check with your bank for the latest fee structure.
6. NEFT, RTGS, IMPS, UPI Benefits and Drawbacks
NEFT
Benefits:
Available 24×7
No minimum transaction limit
Safe and secure
Drawbacks:
Settlement in batches, so not instant
Slight delay compared to RTGS or IMP
RTGS
Benefits:
Instant, real-time settlement
Ideal for high-value transactions
Drawbacks:
Minimum ₹2 lakh limit
Not ideal for small or casual transfers
IMPS
Benefits:
Instant and available 24×7
Works for small to medium value transfers
Drawbacks:
maximum limit usually ₹2 lakh
Requires account details or MMID
UPI
Benefits:
Instant, 24×7, easy to use
No need to remember bank details
Widely accepted by merchants and individuals
Drawbacks:
Transaction limit usually ₹1 lakh per transaction
- Depends on smartphone and internet connectivity
7. Which is the best payment method: NEFT, RTGS, IMPS, or UPI?
The answer depends on your transaction type:
For large payments above ₹2 lakh, RTGS is best.
For quick, small to medium payments anytime: IMPS or UPI.
For non-urgent transfers or bulk payments, NEFT works well.
For everyday payments, mobile recharges, utility bills, or sending money to friends, UPI is the fastest and easiest.
Summary: Choosing the Right Payment Method
Understanding the NEFT RTGS IMPS UPI comparison helps you pick the right tool for your money transfer needs. With digital payments becoming the norm, having clarity on how to use NEFT RTGS IMPS and UPI ensures you save time, avoid extra charges, and transact safely.
If you want speed and convenience, UPI or IMPS is usually suitable for your needs. For big transactions, RTGS remains unmatched in speed. And for scheduled or less urgent transfers, NEFT is reliable and widely supported.
Got more questions about digital payments? Drop them in the comments or check out more guides on MoneyPocket.in!
