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Banking Awareness Capsule 10: NEFT, IMPS & RTGS

Banking Awareness Capsule 10: NEFT, IMPS & RTGS

Dear Aspirants,

In the previous article, we have discussed Information around RBI (Governor and list of Governor till date). The Banking awareness covers a major portion in Banking Recruitment Examinations like IBPS Clerk, SBI PO, IBPS PO etc. Now let’s discuss few common terms used in Banking under Transfer of Funds i.e. NEFT, IMPS and RTGS.

National Electronic Fund Transfer (NEFT)

  • Definition– It is a way in which you can transfer funds from any bank account to any other bank account holder in India. NEFT is based on the batch processing system.
  • Minimum amount – Rs. 1
  • Maximum amount – There is no upper ceiling for transferring money through NEFT, but generally RTGS is recommended  for transfer of funds above Rs 2,00,000 or above
  • Time limit – The transactions are processed in hourly batches. There are twelve settlements from 8 A.M. to 7 P.M. on the weekdays (Monday – Friday) and six settlements from 8 A.M. to 1 P.M. on Saturday. The maximum time consumed is 2 hours from the submitting of the transaction in a batch.
  • Availability – NEFT is not available on the bank holidays, RBI holiday and Sunday.


Note - For transferring funds to Nepal, the limit is of Rs. 50, 000.

Real Time Gross Settlement (RTGS)

  • Definition – Transferring funds from any bank account to any other bank account holder in India within real time. It is generally used when a huge amount is involved in the transaction.
  • Minimum amount – Rs 2,00,000
  • Maximum amount – No limit
  • Time limit – The transactions are processed on order basis i.e. Real-time. The RTGS service is available from 8 A.M to 8 P.M. on the weekdays (Monday – Friday) and from 8 A.M. to 3:30 P.M. on Saturday. The transfer is instant but the bank is allowed to take up to 2 hours for crediting the amount to the depositor account.
  • Availability – RTGS is not available on the bank holidays, RBI holiday and Sunday.


Inter-Mobile Payment Service (IMPS)

  • Definition – It is the way in which you can transfer funds from any bank account to any other bank account holder in India anytime.
  • Minimum amount – Rs 1
  • Maximum amount – Banks are allowed to set their own limit for IMPS.
  • Time limit – It is also real time. The depositor account is credited in less than 1 minute from the submission of the transaction.

 

  • Availability – IMPS can be done 24X7 even on bank holidays, RBI holiday and Sunday.

Note: In all the ways of Fund Transfer there is a mandatory fee charged by the bank that initiates the transfer

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