IMPS vs NEFT – Which one is better?

IMPS vs NEFT

IMPS stands for Immediate Payment Service and NEFT stands for National Electronic Funds Transfer. Both these services assist in transferring money within bank accounts. But IMPS is faster than NEFT. Let’s find who is the winner IMPS vs NEFT.

Due to mobile banking, you can transfer money to the bank account of your relative or friend or for business purpose. These days, instead of issuing cheques, people prefer to transfer money by online means. It saves time of depositing the cheque in the bank account and waiting for it to cash. In the same parlance, facilities such as IMPS and NEFT help in transferring money to bank accounts easily and quickly. You just have to feed the bank details of that person and the amount to be transferred. And that’s it! Now, what is exactly NEFT and IMPS? Confused? Let us discuss in detail.

What is NEFT and IMPS?

In NEFT, the money is transferred in batches at regular intervals during the day. While in IMPS, the money is transferred in batches.

Time for money transfer

The money transfer through NEFT facility is done within 48 hours or two days. On the contrary, in IMPS, as the name suggests, the money is transferred immediately.

Charges for money transfer

As it is the bank that provides money transfer services, it demands certain nominal charges for implementing NEFT transfers. There are no charges levied for transferring amounts up to Rs. 1 lakh. But fifteen rupees are charged for transferring amounts between Rs.1 to Rs.2 lakhs. And Rs. twenty five are charged for transferring more than Rs.2 lakhs. Please note that IMPS transactions are not subject to any charges.

Mode of banking

NEFT is done by electronic banking system. And IMPS is done by mobile banking system.

Timings for bank transfer

If you want to transfer money immediately due to an emergency, then NEFT is not a good option. NEFT works only during the working hours of the bank. Any request for money transfer made after the business hours is carried forward for the next day. Hence, you will have to wait till the next day so that the other party receives payment. This is not the case with IMPS money transfers. IMPS works for all the time. Hence, even if you transfer money by IMPS at midnight 12.00 a.m., it will be immediately transferred to the other party’s bank account. This is the major advantage of IMPS over NEFT.

IMPS 24×7

Another advantage of IMPS facility is that it works on Sundays and holidays. In India, we have many holidays due to the festivals and cultural activities. Hence, NEFT is not suitable for those who want to transfer money during the holiday period and on Sundays. For them, IMPS is a boon. You do not have to wait till Monday morning or the next working day for making the money transfer. Your money will be immediately transferred even during Diwali and Christmas.

Conclusively, IMPS is more advantageous than NEFT. You can use it anytime and is utilized by mobile banking facility.