NEFT, RTGS and IMPS: Definition, Meaning & Guide for Indian Businesses

NEFT (small batches throughout the day), RTGS (real-time, ₹2 lakh+), and IMPS (24×7 instant) are the three interbank fund-transfer systems run by RBI. UPI is built on top of IMPS.

What is NEFT, RTGS and IMPS?

NEFT (National Electronic Funds Transfer) settles in 30-minute batches all day; no minimum, max for online ₹10 lakh. RTGS (Real Time Gross Settlement) is real-time settlement, minimum ₹2 lakh, no maximum — used for high-value B2B. IMPS (Immediate Payment Service) is 24×7 instant, up to ₹5 lakh. UPI is built on IMPS rails so it inherits the 24×7 instant property. For SMBs: use UPI for collections, NEFT for routine vendor payments, RTGS for large one-off transfers (rent advance, equipment purchase). All three are free or nearly free for retail customers as RBI removed online charges in 2020.