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Because most of the banks offer free NEFT with all account variants but free IMPS is generally offered in higher variant accounts. So using NEFT is cost effective for some users.Why would anyone choose NEFT over IMPS/RTGS?
RTGS system is primarily meant for large value transactions. The minimum amount to be remitted through RTGS is ₹ 2,00,000/- with no upper or maximum ceilingRTGS generally has much more daily limits than IMPS. On the same note, why would anyone choose IMPS over RTGS?
1. TRUE, because all the NEFT's are collected and then processed as a bunch. NEFT & RTGS are old technology but IMPS is a recent development.IMPS and RTGS are real time transfers whereas NEFT is not.
For transfers within the limits of these modes, why would anyone choose NEFT over IMPS/RTGS?
RTGS generally has much more daily limits than IMPS. On the same note, why would anyone choose IMPS over RTGS?
because ICICI charges Rs 5 for IMPS whereas NEFT is free. 🙁IMPS and RTGS are real time transfers whereas NEFT is not.
For transfers within the limits of these modes, why would anyone choose NEFT over IMPS/RTGS?
RTGS generally has much more daily limits than IMPS. On the same note, why would anyone choose IMPS over RTGS?
Also, If yuo want to Transfer up to Rs 1 lakh instantly, do a UPI transfer (Gpay). 🙂If you need to transfer a large sum of money urgently, RTGS would be the best option.
If you want to transfer money quickly and don’t need an immediate transfer, NEFT can be a good choice.
If you want to transfer money instantly, including during holidays, IMPS is the way to go.
+1Because most of the banks offer free NEFT with all account variants but free IMPS is generally offered in higher variant accounts. So using NEFT is cost effective for some users.
RTGS system is primarily meant for large value transactions. The minimum amount to be remitted through RTGS is ₹ 2,00,000/- with no upper or maximum ceiling
perfectly summarized. . 🙂Because most of the banks offer free NEFT with all account variants but free IMPS is generally offered in higher variant accounts. So using NEFT is cost effective for some users.
RTGS system is primarily meant for large value transactions. The minimum amount to be remitted through RTGS is ₹ 2,00,000/- with no upper or maximum ceiling
Your manager has given you a task.1. TRUE, because all the NEFT's are collected and then processed as a bunch. NEFT & RTGS are old technology but IMPS is a recent development.
2. Because NEFT is free out of the all. If all of them are free so I suggest you to choose IMPS.
3. Because it is by default selected.
Now, I am unable to comprehend that what is the point of creating this thread, the system (RBI) has provided you with 3 options at your discretion so, it's your's choice (Consumer's Choice) of what option out of the lot you want to choose.
IMPS is for under 2L with instant Transfer.IMPS and RTGS are real time transfers whereas NEFT is not.
For transfers within the limits of these modes, why would anyone choose NEFT over IMPS/RTGS?
RTGS generally has much more daily limits than IMPS. On the same note, why would anyone choose IMPS over RTGS?
I think that limit depends on the type of account you have. There are IMPS limits upto 5 lakhs.IMPS is for under 2L with instant Transfer.
While it's true that NEFT does have a retry mechanism (If it is failed in one batch, it would be retried in the next batch, and so on and so forth), but it's not fully prone to failures. It does fail, and I've seen such complaints on X wherein the amount wasn't remitted to the beneficiary account for days despite entering correct details.ICICI Bank officials mentioned, NEFT is a guaranteed transfer, whereas IMPS and RTGS transfers are prone to failures and the transfer may get refunded. NEFT takes longer time because it is validated and retried internally for that "guaranteed transfer" promise. So if time is not a factor, one should go with NEFT.
I agree to this point. Even though bank says sender would get notification, of date I haven't received any, and every time their excuse is "technical issue". Sender is in darkness.But many times you wouldn't get any communication from your bank when it's completed the transfer.
You can also achieve this via IMPS/RTGS using Scheduled Transfer optionIf you want to transfer money quickly and don’t need an immediate transfer, NEFT can be a good choice.
Another HUGE advantage of NEFT is that you can SCHEDULE transactions on it for a later date. I use that as my preferred mode for credit card payments, because I can schedule them as soon as I get the bill but for the debit to happen only on the due date (or maybe a day before).1. TRUE, because all the NEFT's are collected and then processed as a bunch. NEFT & RTGS are old technology but IMPS is a recent development.
2. Because NEFT is free out of the all. If all of them are free so I suggest you to choose IMPS.
3. Because it is by default selected.
Now, I am unable to comprehend that what is the point of creating this thread, the system (RBI) has provided you with 3 options at your discretion so, it's your's choice (Consumer's Choice) of what option out of the lot you want to choose.
Another HUGE advantage of NEFT is that you can SCHEDULE transactions on it for a later date. I use that as my preferred mode for credit card payments, because I can schedule them as soon as I get the bill but for the debit to happen only on the due date (or maybe a day before).
If you need to transfer a large sum of money urgently, RTGS would be the best option.
If you want to transfer money quickly and don’t need an immediate transfer, NEFT can be a good choice.
If you want to transfer money instantly, including during holidays, IMPS is the way to go.
While it's true that NEFT does have a retry mechanism (If it is failed in one batch, it would be retried in the next batch, and so on and so forth), but it's not fully prone to failures. It does fail, and I've seen such complaints on X wherein the amount wasn't remitted to the beneficiary account for days despite entering correct details.
However, that said, there's no way to confirm in NEFT and RTGS transactions that whether or not the money is actually credited to the beneficiary account unless you contact the beneficiary directly, or yours or their bank for the confirmation.
In both NEFT and RTGS, the origin bank (Sender's bank) would generate a transaction reconciliation number when you do a NEFT/RTGS transaction, which is in the format set by the origin bank (For example, SBINxxxxxxxxx for SBI, Nxxxxxxxx for HDFC and Yes Bank, xxxxxxxxxx for ICICI, etc. wherein "x" is any whole number). Then the origin bank would send it and other people's transaction references to the RBI's servers (Called NEFT Clearing Centre) for clearing in the next available batch (Which is run every 30 minutes), and they are then sorted and processed accordingly, and then sent to the beneficiary bank, who would then credit the amount to the beneficiary's account.
When this process gets completed, your bank would send you an SMS/email when the recipient has received the money. But many times you wouldn't get any communication from your bank when it's completed the transfer.
Whereas, in case of IMPS, the money would be in the beneficiary account either within few seconds or the transaction would fail wholly, with the status being updated instantly. Only when the IMPS transaction is successful, the Transaction Number is generated by the NPCI's server, which would be common for both the sender as well as beneficiary.
I have tried to explain it in simpler terms, and didn't go through the big picture, which is vast and more complex. Hope you get the point. ☺️
UPI also support SCHEDULE transactions.Another HUGE advantage of NEFT is that you can SCHEDULE transactions on it for a later date. I use that as my preferred mode for credit card payments, because I can schedule them as soon as I get the bill but for the debit to happen only on the due date (or maybe a day before).