IMPS vs NEFT: Difference, Speed, Limits and Charges

Key takeaways

• IMPS sends money in seconds, one payment at a time, up to ₹5 lakh per transaction.
• NEFT moves any amount in half-hourly batches, usually within an hour or two.
• Online NEFT is free; IMPS fees depend on your bank and the amount.
• Use IMPS when it is urgent and under ₹5 lakh; use NEFT for larger or planned payments.

The difference between IMPS and NEFT is speed and size: IMPS (Immediate Payment Service) credits each payment within seconds and is capped at ₹5 lakh per transaction, while NEFT (National Electronic Funds Transfer) settles payments in half-hourly batches and has no upper limit set by RBI.

Both are safe, run all day and need only the beneficiary's account number and IFSC code for most transfers, so the IMPS vs NEFT choice comes down to two questions: does the money need to arrive now, and is it under ₹5 lakh?

For example, sending ₹2 lakh to a supplier at 4:10 pm: by IMPS, the supplier sees it within seconds and your bank may charge a few rupees; by NEFT, it goes in the 4:30 pm batch, usually lands before 6 pm, and costs nothing online. Same money, same details; the trade-off is a short wait against a small fee.

IMPS and NEFT both move money between Indian bank accounts, but they handle each payment differently. IMPS, run by NPCI since 2010, sends every payment through on its own the moment you confirm it. NEFT, run by RBI since 2005, collects payments and settles them together every half hour.

A simple way to picture it: IMPS is a taxi that leaves the moment you get in, while NEFT is a bus that leaves every 30 minutes and can carry any load. That is why IMPS is faster and NEFT has no upper limit. For more on the instant system, see what is IMPS.

How do you send money by IMPS or NEFT?

1. Open net banking or your bank's app and add the payee with their account number and IFSC. Some apps also let you send IMPS to a mobile number with the payee's MMID, a 7-digit code from their bank.
2. Choose IMPS or NEFT as the transfer type and enter the amount.
3. Check the payee name your bank shows, then confirm with your OTP or PIN.
4. Note the reference number: a 12-digit RRN retrieval reference number for IMPS, or a UTR for NEFT. You need it to trace the payment.

You can also send NEFT by filling a form at your branch, and many banks offer IMPS at their ATMs. Businesses paying many people at once can upload one bulk file of NEFT or IMPS payments through corporate net banking.

IMPS is faster. It credits the beneficiary within seconds, while NEFT waits for the next half-hourly batch and the receiving bank then has up to 2 hours to credit the account.

In practice, an NEFT payment sent at 3:10 pm goes into the 3:30 pm batch and usually lands well before 5 pm, often within minutes of the batch. An IMPS payment sent at the same moment arrives before you close the app.

The difference matters when the minute counts: a supplier waiting to release goods, a late-night emergency, or a payment that must reach someone before a deadline. For a salary run or a monthly bill, NEFT's timing makes no practical difference.

NEFT runs 48 batches a day, from 00:30 to midnight, so even a payment sent at 2 am moves within half an hour. If a payment does not arrive, give the payee the reference number so their bank can trace it; for IMPS the money should show within seconds, so a delay usually means the transfer failed and will be reversed.

Online NEFT is free for savings account holders, because RBI told banks to stop charging for it in January 2020. IMPS charges are set by each bank: many make small IMPS transfers free and charge a few rupees on larger ones.

• NEFT online: free for savings accounts
• NEFT at a branch: RBI ceilings of ₹2.50 up to ₹10,000, ₹5 up to ₹1 lakh, ₹15 up to ₹2 lakh and ₹25 above, plus GST
• IMPS online, SBI example from 15 August 2025: free up to ₹25,000, then ₹2 up to ₹1 lakh, ₹6 up to ₹2 lakh and ₹10 up to ₹5 lakh, plus GST
• IMPS at a branch: set by each bank

So which is free, and which is cheaper? For a large planned payment made online, NEFT, because it costs nothing. For an urgent one, the few rupees of IMPS are usually worth it. RTGS, for ₹2 lakh and above, is usually free online too; see RTGS vs NEFT for its charges. Check your own bank's schedule, because IMPS fees vary between banks and account types.

A worked example: sending ₹3 lakh by IMPS from an SBI savings account costs ₹10 plus 18% GST, so ₹11.80. The same transfer by NEFT online costs nothing. Banks are free to set IMPS fees because RBI's fee waiver covers NEFT and RTGS, not IMPS, and current accounts often have a different fee schedule from savings accounts.

Choose IMPS when the money must arrive within minutes and the amount is within your bank's IMPS limit; choose NEFT when the amount is larger, the payment can wait an hour, or you want to avoid a fee. Three questions settle it:

1. Is the amount above ₹5 lakh, or above your bank's IMPS limit? Use NEFT, or RTGS if it is ₹2 lakh or more and urgent.
2. Does the payee need the money within minutes, including at night or on a holiday? Use IMPS.
3. Is it a planned or bulk payment where a small fee adds up? Use NEFT, which is free online.

• A vendor will dispatch goods only once paid today: IMPS, so the vendor sees the money in seconds
• A ₹40,000 customer refund on a Sunday night: IMPS, instant at any hour and within the cap
• A ₹12 lakh supplier invoice due at month-end: NEFT, as it is above the IMPS cap and not needed within minutes
• Salaries for 30 staff: NEFT, planned, bulk and free online
• Moving ₹8 lakh to your own account at another bank: NEFT, above the IMPS cap with no urgency

Which is better, IMPS or NEFT? Neither overall: IMPS wins on speed within its cap, NEFT on size and cost, so most businesses use both and decide per payment.

Limits matter as much as the rules. Banks set their own daily caps for each channel, so a business that regularly pays more than its app allows should raise the limit with the bank or use corporate net banking, where daily limits are higher and bulk uploads are available.

IMPS's main drawbacks are its ₹5 lakh cap, possible fees, and that money sent to the wrong account cannot be stopped; NEFT's are that it is not instant and costs a fee at a branch. Each has a simple workaround.