Difference Wiki

NEFT vs. IMPS: What's the Difference?

Edited by Aimie Carlson || By Janet White || Published on March 13, 2024
NEFT (National Electronic Funds Transfer) is a scheduled bank transfer system, while IMPS (Immediate Payment Service) offers instant bank transfers 24/7.

Key Differences

NEFT (National Electronic Funds Transfer) and IMPS (Immediate Payment Service) are both electronic funds transfer systems used in India, facilitating the digital transfer of money from one bank account to another. However, they differ significantly in terms of operational hours, transfer speed, and usage context.
NEFT operates on a scheduled basis, processing transactions in batches during the working hours of banks. This means that transfers can take a few hours to a day to be completed, depending on the time the transaction is initiated. In contrast, IMPS is designed for immediate transfers, allowing users to send and receive money instantly, 24/7, including holidays.
NEFT is widely used for various types of transactions, including payments to individuals, companies, and even for tax remittances. It is known for its safety and reliability for transferring large amounts. IMPS, on the other hand, is often preferred for urgent transactions due to its immediate settlement feature, making it ideal for emergency payments or when immediate funds transfer is necessary.
One key difference between NEFT and IMPS is the transaction limit. NEFT generally does not have a maximum limit per transaction, although banks may impose their own limits for safety reasons. IMPS, however, has a set limit per transaction, which can vary by bank but is usually lower than the maximum limits for NEFT transactions.
In terms of fees, NEFT transactions may incur nominal charges, especially for high-value transactions, while IMPS charges are typically higher due to the convenience of instant transfers. Both systems require the sender to have the recipient's bank account details, but IMPS also necessitates the recipient's mobile number and a 7-digit MMID (Mobile Money Identifier) for certain types of transactions.

Comparison Chart

Transfer Speed

Scheduled batches, can take a few hours
Instant, 24/7 including holidays

Operational Hours

Limited to banking hours
Available 24/7, including holidays

Transaction Limit

Generally no limit, bank-dependent
Lower limit, varies by bank


Nominal, varies with transaction value
Typically higher, varies by bank

Ideal Usage

Non-urgent, large transactions
Urgent, immediate transactions

NEFT and IMPS Definitions


Operates during the working hours of the financial system.
Since it was a weekend, his NEFT transaction was processed the next working day.


Provides instant, 24/7 funds transfer between banks.
He sent emergency funds to his friend using IMPS, regardless of it being midnight.


Suitable for various transactions without immediate urgency.
For his online business, he receives payments via NEFT for bulk orders.


Requires recipient’s mobile number and MMID for transactions.
For quick payment to her tutor, she used IMPS with the provided MMID.


Enables electronic funds transfer across banks in India.
She prefers NEFT for secure, large-value transactions to her suppliers.


Ideal for small to medium urgent money transfers.
To split the dinner bill, he quickly sent his share via IMPS.


May involve nominal charges based on the transaction amount.
The bank charged a small fee for his NEFT transaction due to its high value.


Typically incurs higher fees for the convenience of instant transfer.
The convenience of using IMPS for instant payments was worth the extra charge.


A bank transfer system processing transactions in scheduled batches.
I used NEFT to transfer my rent, knowing it would clear by the next day.


Facilitates immediate transactions, including on holidays.
She was relieved she could use IMPS to pay the electric bill on a Sunday.


A mischievous child.


A small demon.


(Obsolete) A graft.


To graft (new feathers) onto the wing of a trained falcon or hawk to repair damage or increase flying capacity.


To furnish with wings.


Plural of imp


Infl of imp


What is NEFT?

NEFT is a funds transfer system in India that processes transactions in scheduled batches during banking hours.

What is IMPS?

IMPS is an instant payment service that allows 24/7 funds transfer between banks in India.

Are there fees for using IMPS?

Yes, IMPS transactions typically incur higher fees due to the convenience of instant transfer.

Can NEFT transactions be done at night?

NEFT transactions can be initiated at night but will be processed during the next scheduled batch processing time.

What is the maximum limit for NEFT transactions?

NEFT generally does not have a maximum limit, but banks may set their own limits.

Are there fees for using NEFT?

Yes, NEFT transactions may involve nominal fees, especially for higher-value transfers.

Are IMPS transactions instant?

Yes, IMPS transactions are processed instantly, regardless of the time or day.

How long does an NEFT transaction take?

NEFT transactions are processed in batches, so they can take a few hours to a day.

Can I cancel an NEFT transaction?

Once processed, NEFT transactions cannot be canceled; however, if initiated, it can sometimes be halted before the next batch.

What is the maximum limit for IMPS transactions?

The maximum limit for IMPS transactions varies by bank but is typically lower than for NEFT.

Can I send money abroad using NEFT or IMPS?

NEFT and IMPS are designed for domestic transfers within India; international transfers require other services.

Is it safe to use NEFT and IMPS?

Both NEFT and IMPS are secure, regulated by the Reserve Bank of India (RBI).

Is NEFT available on holidays?

NEFT transactions initiated on holidays will be processed on the next working day.

Can businesses use NEFT and IMPS?

Yes, both NEFT and IMPS can be used by businesses for transactions.

Can I use IMPS without internet banking?

Yes, IMPS can be used via mobile banking apps, SMS, or ATM, depending on the bank’s services.

Do I need the recipient's bank details for NEFT?

Yes, you need the recipient's bank account number and IFSC code for NEFT transactions.

Do I need the recipient's MMID for IMPS?

For certain types of IMPS transactions, you need the recipient's mobile number and MMID.

Which is better for urgent transfers, NEFT or IMPS?

IMPS is better for urgent transfers due to its instant processing.

Can I cancel an IMPS transaction?

IMPS transactions are instant and cannot be canceled once initiated.

Which service should I use for high-value transactions?

NEFT is typically preferred for high-value transactions due to its higher security and no maximum limit.
About Author
Written by
Janet White
Janet White has been an esteemed writer and blogger for Difference Wiki. Holding a Master's degree in Science and Medical Journalism from the prestigious Boston University, she has consistently demonstrated her expertise and passion for her field. When she's not immersed in her work, Janet relishes her time exercising, delving into a good book, and cherishing moments with friends and family.
Edited by
Aimie Carlson
Aimie Carlson, holding a master's degree in English literature, is a fervent English language enthusiast. She lends her writing talents to Difference Wiki, a prominent website that specializes in comparisons, offering readers insightful analyses that both captivate and inform.

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