When it comes to transferring money electronically, there are two popular options: IMPS and NEFT. Both have their pros and cons, but what’s the difference between them? Here’s a look at the key differences between IMPS and NEFT.
What is IMPS?
IMPS (Immediate Payment Service) is a real-time payment system that lets people across India instantly transfer funds from one bank account to another.
- This convenient payment option eliminates the need for paper checks and makes money transfers much faster and easier. IMPS is available 24 hours a day, 7 days a week, 365 days a year, and works on both mobile devices and computers.
- With IMPS, users can safely and securely make payments anytime, anywhere without having to worry about carrying cash or waiting for days for a check to clear.
- IMPS is not only a great way to transfer money quickly and easily, but it also helps promote financial inclusion in India by facilitating digital transactions on any given day–making IMPS an invaluable service to its users!
What is NEFT?
NEFT, which stands for National Electronic Funds Transfer, is a system used in India that allows individuals to transfer money from one bank account to another.
- NEFT is a convenient and secure form of transferring funds as it involves minimal paperwork and quick transaction time. Payments can be executed from any NEFT-enabled bank branch or an automated teller machine.
- The NEFT service works with every major bank in India and also allows for transfers to multiple recipient accounts. With NEFT, customers don’t need to worry about their money’s safety since the service is meant to be easy and hassle-free.
- NEFT provides users with efficient options when making financial transactions whether it be small amounts or large. Its popularity continues to rise as more people are taking advantage of its convenience when transferring funds throughout India and beyond.
Difference Between IMPS and NEFT
IMPS and NEFT are two popular digital payment services used by people to send and receive money without any hassle.
- IMPS provides an almost instant transfer of funds, while NEFT takes up to 3 hours, sometimes even a full working day.
- IMPS is the appropriate service for small or immediate payments of up to Rs 2 lakhs and can be done 24 hours a day.
- On the other hand, NEFT is better suited for bigger transactions involving large amounts; however, it can be carried out only during bank operating hours on working days.
Both IMPS and NEFT provide users with an easy and secure way to move their hard-earned money online.
IMPS is a real-time system while NEFT is not. This means that when you make an IMPS payment, the money moves from your bank account to the recipient’s bank account immediately. With NEFT, however, there can be delays of up to 48 hours before the money actually moves. If speed is important to you when making payments, then IMPS is the better option. Otherwise, NEFT will do just fine. Have you tried using either of these methods for transferring money?