NEFT, RTGS, and IMPS are three different systems for moving money between bank accounts in India. They differ in speed, limits, and availability.
NEFT: National Electronic Funds Transfer
NEFT works in batches. Transfers settle in hourly cycles, 24 hours a day, 7 days a week since December 2019. There is no minimum transfer amount. Banks charge small fees for NEFT, typically Rs 2-25 depending on the amount. For small amounts sent during business hours, NEFT is the standard choice.
RTGS: Real Time Gross Settlement
RTGS is for large transfers. The minimum amount is Rs 2 lakh. Settlement is real-time, meaning the money reaches the recipient within minutes. RTGS is available 24 hours a day since December 2020. Banks charge Rs 25-50 for RTGS transfers. Use RTGS when the amount is large and speed matters.
IMPS: Immediate Payment Service
IMPS is instant at any time, 365 days a year. The maximum limit per transaction is Rs 5 lakh. Fees range from Rs 5-25. IMPS is the go-to for urgent transfers below Rs 5 lakh. Most UPI payments actually run on IMPS rails behind the scenes.
How they appear in your statement
Your statement will show the prefix before the transaction narration. "NEFT-" or "N/" means NEFT. "RTGS-" means real-time gross settlement. "IMPS-" means immediate payment. The narration after the prefix shows the sender or recipient name and reference number.
Related reading: Understanding UPI Transactions in Your Bank Statement, How to Read an Indian Bank Statement, How to Spot Fraudulent Transactions.