In recent years, the rise of digital transactions has revolutionized the banking sector, with multiple payment methods being introduced to cater to the different needs of consumers. Four popular methods for digital payments in India are RTGS, NEFT, IMPS, and UPI. In this article, we will discuss each method in detail and highlight the differences between them in a table format.
RTGS (Real Time Gross Settlement): RTGS is a payment method used for high-value transactions. The minimum amount for an RTGS transaction is Rs. 2 lakhs, and there is no upper limit. RTGS transactions are processed in real-time, meaning that the funds are transferred instantly to the beneficiary’s account. RTGS is available only during working hours of the bank, which is usually from 9 am to 4.30 pm on weekdays and till 2 pm on Saturdays.
NEFT (National Electronic Funds Transfer): NEFT is a payment method that is used for transactions that are not of high value. The minimum amount for an NEFT transaction is Rs. 1, but there is no upper limit. NEFT transactions are processed in batches, and the funds are transferred to the beneficiary’s account within two hours of the transaction initiation. NEFT is available 24/7, and the transaction charges are nominal.
IMPS (Immediate Payment Service): IMPS is a payment method that is used for both high-value and low-value transactions. The minimum amount for an IMPS transaction is Rs. 1, and the maximum amount is Rs. 2 lakhs. IMPS transactions are processed in real-time, meaning that the funds are transferred instantly to the beneficiary’s account. IMPS is available 24/7, and the transaction charges are nominal.
UPI (Unified Payments Interface): UPI is a payment method that is used for low-value transactions. The minimum amount for a UPI transaction is Rs. 1, and the maximum amount is Rs. 1 lakh. UPI transactions are processed in real-time, meaning that the funds are transferred instantly to the beneficiary’s account. UPI is available 24/7, and the transaction charges are very nominal or often free.
Now let’s highlight the differences between these payment methods.
In conclusion, digital payments have made our lives easier, and with the introduction of various payment methods, consumers have the flexibility to choose the method that suits their needs. RTGS, NEFT, IMPS, and UPI are all popular payment methods used in India. Understanding the differences between these methods can help you make the right choice for your transactions.