Online Money Transfer: IMPS, NEFT, RTGS Transaction Limit, Timings, All you Need to Know
The Reserve Bank on India or the RBI has recently raised the the limit of the Immediate Payment Service (IMPS) from Rs 2 lakh to Rs 5 lakh per transaction. This step has been announced to make big-ticket fund transfer more approachable. “Immediate Payment Service (IMPS) offers instant domestic funds transfer facility 24×7 through various channels. In view of the importance of the IMPS system and for enhanced consumer convenience, it is proposed to increase the per-transaction limit from Rs 2 lakh to Rs 5 lakh,” RBI Governor Shaktikanta Das had said on October 8 this year.
Immediate Payment Service (IMPS) is overseen by the National Payments Corporation of India (NPCI). It is a payment method that provides instant domestic funds transfer facility 24×7. IMPS can be accessed through various channels like internet banking, mobile banking apps, bank branches, ATMs, SMS and IVRS.
However, IMPS is not the only method to transfer money in an instant through banks across the country. National Electronic Funds Transfer (NEFT) and Real Time Gross Settlement (RTGS) are some of the other platforms that can be used to get the same work done in India. These transaction processes can be used anytime by citizens, and do not involve transfer of money by a bank staff.
Here is a closer look at the money transfer methods available in India.
IMPS gives Indian citizens the opportunity to transfer money in an instant through banks across the country. This service is available 24×7, and even on bank holidays.
“IMPS is a convenient way of sending money, it offers immediate domestic fund transfer around the clock. Increased IMPS limit will not only increase customer experience but also solve more complex problems like credit and settlement risks caused by RTGS infrastructure,” says Nitin Mathur, CEO, Tavaga Advisory Services.
Entities that want to participate in IMPS are required by banks to have a valid banking or prepaid payment instrument license from the Reserve Bank of India. The user needs to register on mobile banking to avail this service. IMPS uses IFSC Code or Aadhar number to make smooth transactions.
Earlier, the maximum transaction limit was Rs 2 lakh for IMPS but the RBI has revised its guidelines. Now, a user can transfer up to Rs 5 lakh using this payment method. “These proposed changes reflect the acceptance of digital infrastructure across the country. These announcements also highlight the willingness of the government to accept the inevitable digital change sooner than later,” notes Mathur in this regard.
The National Electronic Funds Transfer or NEFT system is owned and managed by the Reserve Bank of India itself. NEFT is a centralised payment system that operates across the nation. It has a pan-India coverage and involves a huge network of branches of all types of banks.
The RBI has not imposed any limit on NEFT transactions. However, the user has to make sure that his or her bank is part of the NEFT system before making payments. The funds made through this platform are transferred in batches. These are then settled in 48 half-hourly time slots.
The user has to log in to their bank portals and add the recipient as a beneficiary. Thereafter, the details of the beneficiary has to be entered after which the money can be transferred to his or her account.
In this system, the fund transfer is settled in a continuous and real-time manner. This is done individually on a transaction-by-transaction basis, without netting. The payments made tough RTGS are irrevocable and final as the settlement of the funds takes place in the books of the Reserve Bank of India.
There is no upper limit in the Real Time Gross Settlement, but a user has to transfer a minimum of Rs 2 lakh via this platform.