IMPS (Immediate Payment Service) and NEFT (National Electronic Funds Transfer) are both electronic fund transfer systems used in India, but they differ in various aspects:

 

1. Speed and Timings:

   • IMPS: IMPS is an instant payment service, enabling real-time transfer of funds 24/7, including weekends and holidays. Transactions through IMPS are typically processed immediately.
   • NEFT: NEFT operates in batches and has specific settlement timings. It functions in hourly batches on working days between 8:00 am to 7:00 pm, and 12 settlements take place on weekdays. Transactions are not processed on Sundays, second and fourth Saturdays, and banking holidays.

2. Transaction Limits:

   • IMPS: IMPS often allows smaller transaction limits compared to NEFT. Initially, IMPS had a cap on transaction amounts, but this cap has been increased over time. However, it's generally suitable for smaller value transactions.
   • NEFT: NEFT usually allows higher transaction limits compared to IMPS, making it more suitable for larger transactions.

3. Transfer Modes:

   • IMPS: IMPS operates through multiple channels, including mobile banking, internet banking, ATMs, and bank branches.
   • NEFT: NEFT primarily works through internet banking and bank branches. It does not typically support transfers through ATMs and mobile banking, although some banks may have implemented such facilities.

4. Settlement Cycles:

   • IMPS: Settlement in IMPS occurs on a real-time basis. Transactions are processed immediately upon initiation.
   • NEFT: NEFT transactions are settled in hourly batches, which means that the transactions are processed in specific time slots during the working hours and settle in the next available batch.

5. Charges:

   • IMPS: Charges for IMPS transactions might be higher compared to NEFT due to the instant nature of the service.
   • NEFT: NEFT transactions often have lower charges in comparison to IMPS, making it a cost-effective option for larger transactions.

 

Both IMPS and NEFT are electronic payment systems provided by banks, and the choice between them depends on the urgency of the transfer, transaction amount, convenience, and the availability of services provided by the bank.

 

Thank you.