InvestorQ : What is better IMPS or NEFT?
Ira Shah made post

What is better IMPS or NEFT?

Nikita Damle answered.
12 months ago
Earlier NEFT transactions were settled in half-hourly batches through 23 settlements, whereas IMPS takes place in real-time, which means the transactions happen immediately. But recently RBI has leveled up NEFT processing by announcing that NEFT will be available 24x7, even on bank holidays. Now that both are available round the clock, there are still differences about what is considered better?

1. Charges involved: IMPS is still chargeable. While the charge levied on an IMPS transaction depends largely on the amount being transferred and the policy of the bank carrying out the transfer, the fees usually range from ₹1 to ₹25. However, after the recent announcement by RBI, NEFT charges have been waived off completely on online transfers.

2. Transfers: IMPS is generally used to transferring small amounts, NEFT, on the other hand, can be used to transfer large amounts. So all together, now both small and large amounts can be transferred 24x7.

3.Bank details: While making transactions through NEFT, one has to enter bank details of the payee every time money is transferred. However, for making transactions through IMPS, one needs not to enter any bank details, as it can easily be done by using the payee’s MMID (Mobile Money Identifier).
So, no matter what mode you chose to transfer, both have their own advantages. But the main benefit shall be understood according to the nature and amount of funds transferred.