IMPS (Immediate Payment Service) and NEFT (National Electronic Funds Transfer) are two distinct electronic payment systems offered by SBI (State Bank of India) for transferring funds between different bank accounts.
Here's a brief overview of each:
IMPS is a real-time interbank electronic fund transfer service available in India 24/7, including holidays. It facilitates instant money transfer between bank accounts through multiple channels, such as mobile phones, internet banking, ATMs, or visiting the bank branch. With IMPS:
Real-time Transactions: Money transfers are almost instantaneous, ensuring immediate credit to the recipient's account.
Convenience: It allows individuals to transfer funds using the recipient's mobile number and MMID (Mobile Money Identifier) or the recipient's account number and IFSC code.
Round-the-clock Service: IMPS operates round the clock, allowing transactions at any time, offering flexibility and convenience.
NEFT, like IMPS, is an electronic fund transfer system in India, but it operates on a deferred settlement basis. Transactions occur in batches during specific timings. Key points about NEFT:
Batch Processing: NEFT transactions are processed in batches at set intervals during bank working hours. This means that transactions aren't instantaneous but occur within specified time slots.
Interbank Transfer: NEFT allows individuals or entities to transfer funds from one bank account to another in different banks across India.
Larger Time Window: While NEFT has specific operational hours, it provides a larger time window for conducting transactions compared to RTGS (Real Time Gross Settlement) and operates on all working days of the week.
In summary, IMPS is ideal for immediate and urgent transactions where real-time fund transfer is necessary, while NEFT is more suitable for non-time-sensitive transactions, operating in batches within specific hours on working days. SBI, being a major bank in India, offers both services to cater to the diverse needs of its customers.
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