Why Does India Have  4 Options to Transfer Funds?

Ways to Transfer Funds

RTGS - Real-Time Gross Settlement NEFT - National Electronic Fund Transfer IMPS - Immediate Payment Service UPI - Unified Payments Interface

 1. 2. 3. 4.


Before 2004, individual bank fund transfers risked systemic failure. RBI introduced RTGS, processing each transaction in real-time to mitigate this risk.

Features of RTGS

The minimum transaction amount is 2 lakhs. Primarily used by institutions, large merchants & businesses. Online transactions are free for many banks.

Why NEFT? 

NEFT, besides funds transfer, served diverse purposes like credit card dues, loan EMIs, inward forex remittances, etc.

Features of NEFT

In 2017, the total value of transactions was ₹120 lakh crores. Transaction settling time is 30 minutes. You can send amounts as low as ₹1.


Before 2010, RTGS and NEFT operated during specific hrs. IMPS, from 2010, allowed 24x7 fund transfers up to ₹2 lakhs (now ₹5 lakhs) with deferred net settlement.

Features of IMPS

IMPS includes non-bank entity transfers like PPI users. Originator bears IMPS transaction cost; NPCI charges banks. IMPS transactions can be done from mobile & other devices.

Why UPI?

Introduced n 2016, UPI aimed  to reduce cash usage, track all transactions, curb tax evasion, & boost government revenue by enabling small online peer-to-peer payments.

Features of UPI

UPI allows you to transfer funds through your mobile 24/7 instantly. You can send money from your bank to anyone’s  phone number, UPI, or QR.

A Comparison

Above table shows the comparison of all 4 funds transfer options in India.