India has four main ways to send money electronically between bank accounts: NEFT, RTGS, IMPS and UPI. Exams love to ask which body runs each, the limits, and how they settle. This guide puts it all in one place.
The quick comparison
| Feature | NEFT | RTGS | IMPS | UPI |
|---|---|---|---|---|
| Full form | National Electronic Funds Transfer | Real Time Gross Settlement | Immediate Payment Service | Unified Payments Interface |
| Operated by | RBI | RBI | NPCI | NPCI |
| Launched | 2005 | 2004 | 2010 | 2016 |
| Settlement | Half-hourly batches (deferred net settlement) | Real time, one by one (gross) | Instant | Instant |
| Availability | 24×7 (since December 2019) | 24×7 (since December 2020) | 24×7 | 24×7 |
| Minimum amount | No minimum | ₹2 lakh | No minimum (approx ₹1) | No minimum |
| Maximum amount | No maximum (banks may set their own) | No maximum | ₹5 lakh per transaction | ₹1 lakh generally; ₹5 lakh per transaction for specified categories |
| What you need | Account number + IFSC | Account number + IFSC | Account number + IFSC, or mobile number + MMID | UPI ID (VPA), mobile number or QR code |
| Best for | Routine transfers of any size | Large-value transfers | Instant transfers up to ₹5 lakh | Everyday small payments, P2P and to merchants |
Limits can change. UPI and IMPS limits are set by NPCI and individual banks may set lower limits.
NEFT
- Run by the RBI; started in 2005.
- Works in half-hourly batches and is available 24×7, 365 days since 16 December 2019.
- No minimum or maximum limit set by RBI.
- Since January 2020, banks do not charge savings account customers for online NEFT transfers.
RTGS
- Run by the RBI; started in 2004.
- Each transaction is settled individually and in real time (gross settlement), which makes it suitable for large amounts.
- Minimum ₹2 lakh, no maximum.
- Available 24×7 since 14 December 2020.
IMPS
- Run by NPCI; launched in 2010.
- Instant, 24×7 transfers, including by mobile number + MMID.
- Per-transaction limit raised to ₹5 lakh (from ₹2 lakh) in 2021.
UPI
- Run by NPCI; launched in 2016.
- Lets you link multiple bank accounts in one app and pay using a UPI ID, mobile number or QR code.
- General limit: ₹1 lakh per transaction / per day for most payments.
- Higher limit of ₹5 lakh per transaction for specified categories such as tax payments, hospitals and education institutions, capital markets, insurance and IPO applications (per NPCI rules; daily caps for some categories go up to about ₹10 lakh).
- UPI Lite: small payments up to ₹1,000 per transaction, wallet balance up to ₹5,000 (without PIN for each payment).
- UPI 123PAY: for feature phones. UPI on credit cards: RuPay credit cards can be linked.
Who runs what: NPCI vs RBI
| RBI-operated | NPCI-operated |
|---|---|
| NEFT, RTGS | IMPS, UPI, RuPay, AePS, NACH, BBPS, NETC (FASTag), BHIM, CTS |
NPCI (National Payments Corporation of India) was set up in 2008 by RBI and the Indian Banks’ Association as a not-for-profit company.
When to use which
| Situation | Best option |
|---|---|
| Paying a shopkeeper or a friend a small amount | UPI |
| Sending ₹3 lakh instantly to a relative | IMPS |
| Paying ₹25 lakh for a property | RTGS |
| Paying a vendor’s bill online, any amount, not urgent | NEFT |
Exam-ready one-liners
- NEFT and RTGS are operated by RBI; IMPS and UPI by NPCI.
- RTGS minimum: ₹2 lakh; no maximum.
- NEFT: no minimum or maximum; settles in half-hourly batches.
- NEFT became 24×7 in December 2019; RTGS in December 2020.
- IMPS limit: ₹5 lakh per transaction.
- UPI general limit: ₹1 lakh; specified categories: ₹5 lakh per transaction.
- UPI was launched in 2016; IMPS in 2010; NEFT in 2005; RTGS in 2004.
- NPCI was set up in 2008.
Related reading
Limits and timings are as per RBI and NPCI rules at the time of writing and may change. Always check the latest RBI/NPCI circulars.
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