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Difference between RTGS and IMPS

The introduction of several payment systems, such as National Electronic Funds Transfer (NEFT), Unified Payments Interface (UPI), etc. in India has made it much simpler to transfer money. Amidst these many payment options, Real-Time Gross Settlement (RTGS) and Immediate Payment Service (IMPS) stand out for several reasons. These two are popular payment systems that allow everyone to transfer funds easily without any delay.

Let us help you understand these two payment systems in detail below:

Real-Time Gross Settlement (RTGS)

It is a popular payment system that allows the immediate transfer of funds from one account to another. Such transactions take place in real-time and gross basis. Therefore, it is termed ‘Real-Time Gross Settlement.’

Listed below are some of the key features of the RTGS payment system:

  • RTGS facility is available for customers and inter-bank transactions round the clock
  • Transactions made through RTGS are processed on a one-to-one basis
  • The RTGS transactions are quite secure as they are managed by the Reserve Bank of India (RBI)
  • It is mainly used for high-value transactions that require immediate clearance
  • There are no additional charges applicable on RTGS transactions
  • It allows real-time money transfer
  • The RTGS service can be accessed throughout the year, making it a 24 x 7 service
  • The transactions made through RTGS can be initiated from anywhere using internet banking
  • It has a minimum transfer limit of Rs. 2 Lakh. However, there is no maximum limit on transfer
  • The RTGS transactions are backed legally. So, there is minimal risk of fraud.

If you’re looking forward to transferring funds through RTGS, make sure that you and the recipient have an RTGS-enabled account.

Once the two of you have an account, proceed with the following steps to transfer money:

  • Login to your banking portal
  • Add the recipients as a beneficiary by submitting their name, account number, account type, and IFSC code
  • Choose RTGS as the mode of your transfer
  • Enter the transfer amount
  • Confirm the transaction.

After you’ve initiated an RTGS transfer, wait for approximately two hours for the success of the transaction.

Immediate Payment Service (IMPS)

Introduced by the National Payments Corporation of India (NPCI), IMPS is an interbank fund transfer service. It is a real-time payment mode, which is available throughout the year including bank holidays.

Below are a couple of key features of IMPS that will help you understand the payment system in detail:

  • IMPS works on both, internet banking and mobile platforms
  • IMPS transactions have a minimum limit of Rs. 1 Lakh
  • The charges applicable on IMPS transfers vary between Rs. 5 and Rs. 15. This depends on one bank to another
  • Additional service taxes can be levied on IMPS transfers
  • It provides instant transfer of funds within banks across countries
  • The payers and payees are notified by the bank upon the completion of the IMPS transaction
  • IMPS transactions can also be used to receive payments, make payments to other merchants, carry out mobile banking transactions, and so on
  • The transactions made through mobile phones do not usually require bank account numbers.

With these features, IMPS has become quite popular among the masses. Therefore, it is used by many people today.

So, if you’re also willing to make an IMPS transfer, follow the steps mentioned below:

  • Login to Airtel Payments Bank Ltd. Net Banking
  • Go to ‘Transfers and Payments’
  • Click on Add/ Manage beneficiaries
  • Press ‘Add Transfer Type’
  • Choose IMPS as your preferred mode of transfer
  • Enter and verify the required details
  • Click on ‘Confirm’

After following the above-mentioned steps, you will receive an activation code on your registered mobile phone number.

Once you receive the code, make sure that you submit the code and wait back for the beneficiary to be added.

Now that you know what IMPS and RTGS is, let’s proceed further to understand the difference between rtgs and imps below:

Difference between RTGS and IMPS:

RTGS and IMPS are two payment systems, which are completely different from one another. However, very few people are aware of their differences.

Let us help you find out what those are in detail below:


Point of Differentiation RTGS IMPS
Minimum Transfer Value Rs. 2 Lakh Re. 1
Maximum Transfer Value NIL Rs. 2 Lakh
Mode of Payment Online and Offline Online
Operational Time Differs from bank to bank 24 x 7
Charges NIL Depends on one bank to other
Settlement Time Immediate Immediate

RTGS and IMPS are completely different from one another. They differ in terms of their charges, operational time, payment mode, and so forth. So, choose the payment system of your choice and proceed with the transaction wisely!