NEFT vs RTGS vs IMPS

Various online money transfer methods are used in India, such as UPI, digital wallets, etc. But, the most commonly used ones are NEFT, RTGS and IMPS. These payment methods offer flexibility to the account holders. For using any of these facilities, one must have the basic bank account details of the beneficiary.

Below is a comparison chart of all the three payment transfer methods used in India:

Which of the three modes is better for small businesses?

After going through the differences mentioned above, it is very clear that NEFT and RTGS are two majorly different modes of money transfer. RTGS can opt only if the transfer amount is Rs. 2 lakhs or more. On the other hand, NEFT transactions can opt for any amount. Also, the IMPS method can opt only if the maximum transferable amount is Rs. 2 lakhs or less. So, for a small business, a preferable payment method depends upon the nature of the transaction:

• One can opt for NEFT mode if the transfer amount is less and there is no urgency for settlement transactions.
• On the other hand, if a huge sum is involved and the settlement has to be done immediately, the RTGS option should be opted for.
• If a small sum is involved and the transaction needs immediate settlement, IMPS should be opted for. But, one must keep in mind that this option is available only online.

No matter which option one chooses, it is important to note that all three modes of payment are safe and secure.