RTGS vs IMPS: What is the Difference?

When deciding between RTGS and IMPS, it is important to understand how these payment systems differ in terms of transaction limits, availability, and suitability. Both methods enable quick fund transfers, but they are designed for different transaction requirements.

Bajaj Pay, the Bharat Connect payments platform on Bajaj Finance offers a convenient platform for making secure payments using multiple payment methods, including credit cards, debit cards, net banking, Bajaj Pay Wallet, and Bajaj Pay UPI.

Transaction speed

• RTGS: Funds are transferred and settled individually in real time, making it suitable for high-value transactions that require immediate processing.
• IMPS: Enables instant money transfers between bank accounts, with funds typically credited within seconds.

Availability

• RTGS: Available 24x7 throughout the year, including weekends and bank holidays through digital banking channels.
• IMPS: Operates round the clock, allowing customers to send and receive money anytime.

Transaction limit

• RTGS: Requires a minimum transfer amount of Rs. 2 lakh. There is no maximum limit prescribed by RBI, although individual banks may set their own limits.
• IMPS: Supports transfers starting from Rs. 1, with a maximum transaction limit of Rs. 5 lakh per transaction, subject to bank-specific policies.

Charges

• RTGS: Banks may levy charges depending on their pricing structure, although many digital banking channels offer RTGS transfers at minimal or no cost.
• IMPS: Transaction charges, if applicable, vary from one bank to another and may depend on the transfer amount.

Use cases

• RTGS: Best suited for large-value transactions such as property purchases, business payments, corporate fund transfers, and other high-value settlements.
• IMPS: Ideal for low to medium-value transfers, including utility bill payments, online purchases, emergency fund transfers, and peer-to-peer transactions.

Which is better: IMPS or RTGS?

The choice between IMPS and RTGS depends on the amount and purpose of the transaction.

• Choose RTGS when transferring Rs. 2 lakh or more and when immediate settlement of large amounts is required.
• Choose IMPS for quick everyday transactions, especially when the transfer amount is within the permitted limit and instant access to funds is important.

Both RTGS and IMPS offer secure, real-time fund transfer capabilities, making them reliable options for different payment needs.

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