NEFT vs RTGS vs IMPS vs UPI — Difference Explained

Transferring money online in India? You've likely seen options like NEFT, RTGS, IMPS, and UPI — but which one should you use? Each method has different transfer limits, charges, settlement times, and availability. This guide breaks down every difference so you can pick the right one for your needs.

What is NEFT?

NEFT (National Electronic Funds Transfer) is a nation-wide payment system managed by the Reserve Bank of India (RBI). It allows you to transfer any amount from one bank account to another.

• Managed by: RBI
• Launched: 2005
• Settlement: In batches (every 30 minutes), 24×7 since December 2019
• Minimum amount: ₹1
• Maximum amount: No upper limit (bank-specific limits may apply)

What is RTGS?

RTGS (Real Time Gross Settlement) is designed for high-value, urgent transactions. Transfers are settled individually and in real time.

• Managed by: RBI
• Launched: 2004
• Settlement: Real-time, individually processed
• Minimum amount: ₹2,00,000 (₹2 lakh)
• Maximum amount: No upper limit
• Availability: 24×7 since December 2020

What is IMPS?

IMPS (Immediate Payment Service) is an instant interbank transfer service operated by NPCI. It works 24×7, including holidays.

• Managed by: NPCI
• Launched: 2010
• Settlement: Instant (within seconds)
• Minimum amount: ₹1
• Maximum amount: ₹5,00,000 (₹5 lakh)
• Availability: 24×7×365

What is UPI?

UPI (Unified Payments Interface) is a mobile-first instant payment system by NPCI. It lets you send and receive money using a UPI ID (VPA) without sharing bank details.

• Managed by: NPCI
• Launched: 2016
• Settlement: Instant (within seconds)
• Minimum amount: ₹1
• Maximum amount: ₹1,00,000 (₹1 lakh) for most transactions; ₹2 lakh for some categories
• Availability: 24×7×365

New to UPI? Check out our complete UPI setup guide to get started.

NEFT vs RTGS vs IMPS vs UPI — Comparison Table

Note: RBI has mandated zero charges for online NEFT and RTGS transactions since January 2020.

When to Use Which Method

Use NEFT When:

• You're transferring any amount and don't need instant settlement
• You want a free transfer with no upper limit
• Batch processing (slight delay) is acceptable

Use RTGS When:

• You're sending ₹2 lakh or more
• You need real-time settlement for large amounts
• Purchasing property, vehicles, or making business payments

Use IMPS When:

• You need an instant transfer (up to ₹5 lakh)
• You're sending money outside banking hours or on holidays
• The recipient needs funds immediately

Use UPI When:

• You're making everyday payments — bills, shopping, food
• You want to send money using just a phone number or UPI ID
• The amount is under ₹1 lakh
• You prefer not to share bank account details

How to Transfer Money via Each Method

NEFT — Step by Step

1. Log in to your bank's net banking or mobile app
2. Go to Fund Transfer → Select NEFT
3. Add beneficiary (name, account number, IFSC code)
4. Wait for beneficiary activation (30 min – 24 hours)
5. Enter amount and confirm the transfer
6. Money reaches the recipient in the next settlement batch

RTGS — Step by Step

1. Log in to net banking or visit your bank branch
2. Go to Fund Transfer → Select RTGS
3. Add beneficiary with account number and IFSC
4. Enter amount (minimum ₹2 lakh)
5. Confirm and authenticate the transaction
6. Funds are credited to the recipient in real time

IMPS — Step by Step

1. Log in to your mobile banking app or net banking
2. Go to Fund Transfer → Select IMPS
3. Enter beneficiary account number + IFSC, or MMID + mobile number
4. Enter amount (up to ₹5 lakh)
5. Confirm the transfer
6. Money is credited instantly

UPI — Step by Step

1. Open any UPI app (Google Pay, PhonePe, Paytm, BHIM)
2. Tap Send Money or Pay
3. Enter UPI ID, QR code, or mobile number
4. Enter amount and add a note (optional)
5. Enter your UPI PIN to confirm
6. Money is transferred instantly

Don't have a bank account yet? Here's how to open a bank account online.

Important Tips

• NEFT and RTGS are free for online transactions — RBI mandated this from January 2020. Banks may charge for branch transactions.
• IMPS charges vary by bank — typically ₹2.50 to ₹25 depending on the transfer amount.
• UPI has no charges for person-to-person transfers. Merchant transactions above ₹2,000 may attract a small MDR in future.
• Always double-check account details before initiating NEFT, RTGS, or IMPS — wrong transfers are difficult to reverse.
• UPI transactions can be reversed more easily through the app's dispute mechanism if sent to the wrong person.
• Set transaction limits on your mobile banking app for security — most banks allow you to customise daily limits.
• Keep your UPI PIN private — never share it with anyone, including bank officials.

Related Guides

• UPI Payment Setup Guide — How to Set Up & Use UPI in India
• UPI Payment Failed But Money Debited — How to Get Refund
• UPI Payment Refund Not Received — How to Fix
• UPI Transaction Failed — All Error Codes & Fixes
• WhatsApp Payment Not Working? How to Fix UPI on WhatsApp

Frequently Asked Questions

1. Which is faster — NEFT, RTGS, IMPS, or UPI?

IMPS and UPI are the fastest — both settle within seconds. RTGS is real-time but primarily for large amounts (₹2 lakh+). NEFT settles in batches every 30 minutes.

2. Is there any charge for NEFT and RTGS?

No. RBI has made online NEFT and RTGS transactions completely free since January 2020. Banks may charge a small fee for branch-based transactions.

3. What is the maximum transfer limit for UPI?

The standard UPI limit is ₹1,00,000 per transaction. For specific categories like capital markets, insurance, and loan repayments, the limit has been enhanced to ₹2,00,000 or more.

4. Can I use IMPS and UPI on holidays?

Yes. Both IMPS and UPI work 24×7, 365 days a year — including weekends and public holidays. NEFT and RTGS are also available 24×7.

5. What details do I need for each transfer method?

• NEFT/RTGS/IMPS: Beneficiary name, bank account number, and IFSC code
• UPI: Just the recipient's UPI ID (e.g., name@upi), mobile number, or QR code

6. Can I transfer money from one bank to another using UPI?

Yes. UPI supports interbank transfers. You can send money from any bank account linked to your UPI app to any other bank account in India.

7. What happens if an NEFT or IMPS transaction fails?

If a transaction fails, the amount is automatically refunded to your account. NEFT refunds may take a few hours; IMPS refunds are usually instant. If not refunded within 24–48 hours, contact your bank.