The introduction of several payment systems, such as National Electronic Funds Transfer (NEFT), Unified Payments Interface (UPI), etc. in India has made it much simpler to transfer money. Amidst these many payment options, Real-Time Gross Settlement (RTGS) and Immediate Payment Service (IMPS) stand out for several reasons. These two are popular payment systems that allow everyone to transfer funds easily without any delay.

Let us help you understand these two payment systems in detail below:

Real-Time Gross Settlement (RTGS)

It is a popular payment system that allows the immediate transfer of funds from one account to another. Such transactions take place in real-time and gross basis. Therefore, it is termed ‘Real-Time Gross Settlement.’

Listed below are some of the key features of the RTGS payment system:

RTGS facility is available for customers and inter-bank transactions round the clock
Transactions made through RTGS are processed on a one-to-one basis
The RTGS transactions are quite secure as they are managed by the Reserve Bank of India (RBI)
It is mainly used for high-value transactions that require immediate clearance
There are no additional charges applicable on RTGS transactions
It allows real-time money transfer
The RTGS service can be accessed throughout the year, making it a 24 x 7 service
The transactions made through RTGS can be initiated from anywhere using internet banking
It has a minimum transfer limit of Rs. 2 Lakh. However, there is no maximum limit on transfer
The RTGS transactions are backed legally. So, there is minimal risk of fraud.

If you’re looking forward to transferring funds through RTGS, make sure that you and the recipient have an RTGS-enabled account.

Once the two of you have an account, proceed with the following steps to transfer money:

Login to your banking portal
Add the recipients as a beneficiary by submitting their name, account number, account type, and IFSC code
Choose RTGS as the mode of your transfer
Enter the transfer amount
Confirm the transaction.

After you’ve initiated an RTGS transfer, wait for approximately two hours for the success of the transaction.

Immediate Payment Service (IMPS)

Introduced by the National Payments Corporation of India (NPCI), IMPS is an interbank fund transfer service. It is a real-time payment mode, which is available throughout the year including bank holidays.

Below are a couple of key features of IMPS that will help you understand the payment system in detail:

IMPS works on both, internet banking and mobile platforms
IMPS transactions have a minimum limit of Rs. 1 Lakh
The charges applicable on IMPS transfers vary between Rs. 5 and Rs. 15. This depends on one bank to another
Additional service taxes can be levied on IMPS transfers
It provides instant transfer of funds within banks across countries
The payers and payees are notified by the bank upon the completion of the IMPS transaction
IMPS transactions can also be used to receive payments, make payments to other merchants, carry out mobile banking transactions, and so on
The transactions made through mobile phones do not usually require bank account numbers.

With these features, IMPS has become quite popular among the masses. Therefore, it is used by many people today.

So, if you’re also willing to make an IMPS transfer, follow the steps mentioned below:

Login to Airtel Payments Bank Ltd. Net Banking
Go to ‘Transfers and Payments’
Click on Add/ Manage beneficiaries
Press ‘Add Transfer Type’
Choose IMPS as your preferred mode of transfer
Enter and verify the required details
Click on ‘Confirm’

After following the above-mentioned steps, you will receive an activation code on your registered mobile phone number.

Once you receive the code, make sure that you submit the code and wait back for the beneficiary to be added.

Now that you know what IMPS and RTGS is, let’s proceed further to understand the difference between rtgs and imps below: