India has four electronic ways to move money between banks: NEFT, RTGS, IMPS and UPI. They overlap, but each has a sweet spot defined by how much you are sending, how fast you need it, and what (if anything) it costs. Here is the clear comparison and a one-line rule for which to use.
NEFT vs RTGS vs IMPS vs UPI at a glance
| Method | Amount | Speed | Availability | Typical charge |
|---|---|---|---|---|
| NEFT | Min ₹1, no upper limit | Batches, ~30 min to 2 hrs | 24x7 | Free online |
| RTGS | Min ₹2 lakh, no upper limit | Real-time / near-instant | 24x7 (since 14 Dec 2020) | Free online |
| IMPS | Min ₹1, max ₹5 lakh | Instant | 24x7 | Free at many banks; else ~₹2.5-25 + GST |
| UPI | Generally up to ₹1 lakh/day (higher for some categories) | Instant | 24x7 | Free for consumers |
What each one is for
NEFT — the workhorse for routine transfers of any size where a 30-minute settlement is fine (vendor payments, rent, EMIs). No upper limit, free online.
RTGS — built for high-value transfers; the ₹2 lakh minimum is the giveaway. Use it for property tokens, large business payments, anything big you want settled in real time.
IMPS — instant, 24x7, for small-to-mid amounts up to ₹5 lakh when you need the money to land now and the recipient isn’t on UPI. Some banks levy a small fee.
UPI — the default for everyday payments up to ₹1 lakh: free, instant, app-based, no need for account number or IFSC. For most person-to-person and merchant payments, UPI has simply replaced the others.
The simple rule
- Everyday payment up to ₹1 lakh → UPI (free, instant).
- Need it instant, ₹1-5 lakh, recipient not on UPI → IMPS.
- Big transfer of ₹2 lakh or more, want real-time → RTGS.
- Any amount, not urgent, want it free → NEFT.
A note on charges
The RBI has waived NEFT and RTGS charges for transactions initiated online, so net-banking and mobile transfers via these are free at virtually every bank. Branch (over-the-counter) transfers may still carry a fee. IMPS is free at several banks (such as SBI and IDFC First) but can cost ₹2.5-25 + GST elsewhere. UPI is free for consumers. For everyday small transfers the cheapest and fastest option is almost always UPI — the same reason it dominates; for the limits and any merchant-side costs see our UPI transaction fees guide.
Frequently Asked Questions
What is the difference between NEFT, RTGS and IMPS?
NEFT settles in batches over about 30 minutes to 2 hours with no amount limit; RTGS is real-time but only for transfers of ₹2 lakh and above; IMPS is instant for amounts up to ₹5 lakh. All three are available 24x7. NEFT and RTGS are free when initiated online, while IMPS is free at many banks and otherwise costs a small fee. RTGS suits high-value urgent transfers, IMPS suits instant small-to-mid transfers, and NEFT suits routine payments.
What is the minimum amount for RTGS?
RTGS has a minimum transfer amount of ₹2 lakh and no upper limit. It is designed for high-value transactions and settles in real time. For amounts below ₹2 lakh you would use NEFT, IMPS or UPI instead. RTGS has been available 24x7 since 14 December 2020.
What is the maximum limit for IMPS and UPI?
IMPS has a maximum limit of ₹5 lakh per transaction (subject to the bank). UPI is generally capped at ₹1 lakh per day for most transactions, though certain categories such as some bill payments, insurance and capital-market transactions have higher limits of ₹2-5 lakh. Both are instant and available 24x7.
Are NEFT and RTGS free?
Yes, the RBI has waived charges for NEFT and RTGS transactions initiated online, so transfers via net banking or mobile are free at virtually all banks. Over-the-counter transfers at a branch may still attract a fee. IMPS is free at several banks but can cost ₹2.5-25 plus GST at others, and UPI is free for consumers.
Which is faster, NEFT or IMPS?
IMPS is faster — it is instant and processes within minutes, 24x7. NEFT works in batches and can take from about 30 minutes up to 2 hours to settle. If you need the money to reach the recipient immediately and they are not on UPI, use IMPS; if timing is not critical and you want it free, NEFT is fine.
Sources: RBI guidelines on NEFT, RTGS and IMPS; NPCI rules for UPI and IMPS limits. Per-transaction limits and charges vary by bank — confirm with yours. Current as of 2026.