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RTGS & IMPS Meaning in Banking: Full Form, Charges & How It Works for Money Transfer?
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The banking sector has seen transformative changes, especially in the way transactions are carried out. Immediate money transfers, once a luxury, are now a necessity, ensuring individuals and businesses can move funds swiftly and securely. Leading this change are two pivotal systems: RTGS full form is (Real-Time Gross Settlement) and IMPS full form is (Immediate Payment Service). These have streamlined the way we perceive and execute bank transactions, setting new benchmarks for speed and efficiency. If you’re wondering about questions like, “What is RTGS?" or “What is IMPS?” this blog will answer all your queries.
What is RTGS? RTGS Full Form & Meaning
RTGS, or Real-Time Gross Settlement, is a payment system facilitating instantaneous and secure fund transfers between bank accounts. This method is favoured for high-value transactions due to its real-time processing and individual transaction handling, as opposed to batch processing. RTGS can also be utilized for debit and credit card payments, which are accessible through online banking or by visiting a bank branch. The process involves direct and immediate funds transfer, ensuring timely and efficient transactions.
While RTGS offers convenience, it may entail certain charges, depending on the bank's policies. Despite potential fees, the benefits of RTGS include rapid fund transfers and enhanced security measures.
How RTGS Works?
RTGS operates by facilitating instantaneous and secure fund transfers between bank accounts. When initiating a transfer, the sender provides the recipient's bank account details and the amount to be transferred. The sender's bank debits the specified amount from their account and transmits the transfer instructions to the central RTGS system. The recipient's bank receives the instructions, credits the recipient's account with the transferred amount, and confirms the transaction's completion. This process occurs in real-time, ensuring swift and efficient fund transfers between parties.
What is IMPS? IMPS Full Form & Meaning
IMPS, or Immediate Payment Service, is a banking service for instant money transfers facilitated by the NPCI (National Payment Corporation of India). With IMPS, individuals can send or receive funds instantly and conduct inter-bank transactions using mobile or online banking platforms. One of the key advantages of IMPS is its round-the-clock availability, allowing users to make transactions at any time of day or night. This flexibility makes IMPS a highly convenient and efficient payment service, catering to the needs of individuals and businesses alike. By using IMPS, users can enjoy swift and secure fund transfers, enhancing overall financial accessibility and convenience.
How IMPS Works?
IMPS enables instant money transfers between bank accounts via mobile or online banking platforms. To initiate a transfer, the sender enters the recipient's account details and the amount to be transferred. The sender's bank debits the specified amount from their account and transmits the transfer instructions to the NPCI's IMPS system. The recipient's bank receives the instructions, credits the recipient's account with the transferred amount, and confirms the transaction's completion. This process occurs in real-time, ensuring rapid and secure fund transfers between parties.
Differences between IMPS and RTGS
Aspect
IMPS
RTGS
Transfer Limits
Up to Rs 2 lakh (though this might vary by bank)
Usually, for transfers above Rs 2 lakh
Transfer Speed
Almost instantaneous
Processed on a real-time basis, usually within 30 minutes
Operational Timings
24/7, throughout the year
Usually from 7:00 AM to 6:00 PM on working days
Beneficiary Addition Time
Immediate or up to 30 minutes, depending on the bank
Might require a waiting period, often up to an hour
This comparison table underscores the primary distinctions between IMPS and RTGS. While both methods ensure quick and secure money transfers, they cater to different transaction needs and come with their respective operational specifics.
How IMPS Facilitate Money Transfers?
Immediate Payment Service (IMPS):
How RTGS Facilitate Money Transfers?
Real-Time Gross Settlement (RTGS):
Attention to Specifics: To initiate an RTGS transfer, you must have all beneficiary details readily available, including account number, bank, branch, and other pertinent information.
What is the transaction fee for RTGS?
Transaction Amount Range (Rs)
Transaction Charge (Rs)
2,00,000 - 5,00,000
Not exceeding Rs 24.50 (exclusive of tax, if any)
Above 5,00,000
Not exceeding Rs. 49.50 (exclusive of tax, if any)
Transaction Amount Range (Rs)
Transaction Charge
Up to 10,000
Rs 2.5
Above 10,000 - 1,00,000
Rs 5
Above 1,00,000 - 2,00,000
Rs 15
Suggested H2 What details are Required to Carry out an RTGS Transaction?
To carry out an RTGS transaction, certain essential details must be provided to ensure seamless fund transfers.
What details are Required to Carry out an IMPS Transaction?
To initiate an IMPS transaction, specific information must be furnished to facilitate swift and secure money transfers.
It’s Not All The Same:
Every bank can have its regulations about charges, too. For instance, Kotak Mahindra Bank is known for special rates for its loyal customers.
Anything Sneaky Like Hidden Charges?
Typically, these figures handle the essentials. However, remain vigilant. The bank might impose additional charges if a transfer affects your balance or leads to an overdraft.
It’s always a good practice to keep up with your bank's fees and charges for making RTGS and IMPS transfers. After all, no one loves surprises when it comes to banking charges.
FAQs About RTGS and IMPS
What is the minimum amount for an IMPS transfer?
IMPS is super flexible. You can transfer as low as Rupee 1. Yes, just a single rupee! But remember, different banks might have different rules, so it is always worth double-checking.
Is IMPS better than other modes of online money transfer?
IMPS is like the superhero of instant transfers. It's available 24/7, and it's quick. Unlike some methods that keep you waiting till the next working day, IMPS doesn’t make you hang about.
For which transactions is RTGS best to use?
RTGS is your mate for those significant, bulky transactions. Think anything above Rs 2 lakh. It's real-time, so the money gets moving as soon as you hit send.
Are there any charges applicable on online money transfers?
Well, there's no such thing as free transactions. While charges are relatively minimal, they do exist. IMPS might cost you a couple of rupees to around Rs 15, depending on the amount. RTGS charges can range from Rs 20 to Rs 50, especially for high-value transfers.
Which mode of payment between NEFT or RTGS is faster?
RTGS takes the gold medal here. It's real-time, remember? While NEFT is no slouch, it operates in hourly batches, so it might have you waiting just a bit. If you want to know what NEFT and RTGS are, read this article to understand your options.
What is the RTGS & IMPS limit per day?
For IMPS, you're typically looking at a daily limit of around Rs 2 lakh, but some banks might let you push it higher. With RTGS, since it's designed for hefty sums, there's no upper ceiling. Still, it is best to check with your bank, especially if you're thinking of transferring an amount with more zeroes than you can count.
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