Bank transfers are something we deal with almost every day—whether it’s covering bills, sending money to a loved one or handling business transactions. But have you thought about which transfer method works best for your needs? Some transfers are quick and instant, while others are better suited for scheduled, larger transactions.
That’s where knowing about RTGS and IMPS comes in handy. Both are popular ways to transfer money from your current and savings account. Each comes with its own benefits, depending on what you need. So, let’s dive into the differences between RTGS and IMPS to help you decide which one is right for your next transfer.
About RTGS
Real-Time Gross Settlement, or RTGS, is a way to transfer large amounts of money instantly from one bank to another. Unlike other transfer methods that handle payments in groups, RTGS settles each transaction one by one and right away.
It’s mainly used for high-value transfers where speed and security are crucial. Once you complete an RTGS transaction, it’s final and can’t be reversed, making it a solid choice when you need to move big amounts urgently and securely.
About IMPS
Immediate Payment Service, or IMPS, lets you make quick and easy bank transfers anytime you want. Unlike other methods that are limited to banking hours, IMPS works around the clock, even on holidays, so you can send money whenever you need to.
This makes it perfect for everyday transactions that need to happen fast. It’s widely used for smaller amounts and offers a flexible, real-time option that works well for both personal and business transfers.
RTGS vs IMPS: What’s the difference?
| Aspects | RTGS (Real-Time Gross Settlement) | IMPS (Immediate Payment Service) |
| Managed by | Reserve Bank of India | National Payments Corporation of India |
| Processing time | Real-time, but may take up to 30 minutes | Instant, usually within seconds |
| Minimum transfer | ₹2 Lakhs | No minimum limit |
| Maximum transfer | No upper limit | ₹2 Lakhs per transaction |
| Charges | Charges vary by bank, usually higher for large amounts | Typically lower charges, depending on the bank |
| Channels | Internet banking, mobile banking, bank branches | Internet banking, mobile banking, ATMs, SMS |
| Settlement Type | Individual, gross settlement, irreversible | Real-time and irrevocable, but with multiple modes for access |
How to make an RTGS transfer?
To conduct an RTGS transaction in India, you have two main options. Here’s a quick rundown of both methods:
Online RTGS Transfer
These are free and can be done 24/7, providing quick, real-time transfers without needing to visit the bank.
- Log in to your internet banking account.
- Navigate to the “funds transfer” or “RTGS” option.
- Enter beneficiary details like name, account number, bank number, and IFSC code.
- Specify the amount you wish to transfer and confirm.
- Authenticate the transaction with a one-time password (OTP) sent to your registered mobile number.
In-Person RTGS Transfer at a Bank Branch
For offline transfers, you may incur a small fee depending on the transfer amount. These transactions are processed in real time, ensuring funds reach the recipient quickly.
- Visit the branch and request an RTGS form.
- Fill out the form with the beneficiary’s information, including account number and bank details.
- Submit the form with a cheque for the transfer amount.
- Receive a UTR Number, which you can use to track the transaction.
How to make an IMPS transfer?
IMPS is available 24/7, making it perfect for quick, reliable transfers at any time. You can make these transfers in the following ways:
Via Mobile or Internet Banking
- Log in to your bank’s mobile app or Internet banking portal.
- Go to fund transfer and select the IMPS option.
- Enter the beneficiary’s mobile number and MMID or use their bank account number and IFSC code.
- Enter the amount and confirm the transaction with an OTP or MPIN.
Via ATM
- Insert your debit card and enter your PIN.
- Select IMPS fund transfer from the menu.
- Enter the beneficiary’s details, like mobile number and MMID, along with the transfer amount.
- Confirm the transaction and you’ll receive an SMS confirmation.
Via SMS
- Format the SMS with your bank’s specific IMPS command (typically something like: “IMPS <Beneficiary Mobile No> <MMID> <Amount> <MPIN>”).
- Send the SMS to your bank’s designated number and both parties will receive a confirmation.
Wrapping up: Which is right for you?
When you’re deciding between RTGS and IMPS, think about factors like how much you’re sending, how fast you need it to get there and when you can make the transfer. RTGS is great for big transfers with immediate, secure processing, though it might not work for smaller amounts. IMPS, however, is perfect for lower-value transfers and since it’s available 24/7, it’s super convenient for quick, everyday needs. Just match these factors to your situation to pick the right option for you.
