Immediate Payment Service (IMPS) is an instant payment inter-bank electronic funds transfer system in India. IMPS offer an inter-bank electronic fund transfer service through mobile phones. Unlike NEFT and >RTGS, the service is available 0800 hours to 2000 hours throughout the year including bank holidays.
In the case of NEFT transfer, under normal circumstances the funds from the remitting bank will be sent to the RBI within three hours of the transaction. However, the actual time taken to credit the beneficiary bank's branch account depends on the time taken by the beneficiary bank to process the payment. Also, the NEFT works on net settlement basis that is the amount is settled in batches and in different timings.
According to the RBI, NEFT settlement is carried out six times a day at 9.30 am, 10.30 am, 12 noon, 1 pm, 3 pm and 4 pm on weekdays and three times during Saturdays at 9.30 am, 10.30 am and 12 noon.
On the instructions of the RBI, banks providing T+0 and T+1 settlement systems offer NEFT for smaller transactions depending on the time of receiving the instruction from a customer for transferring the fund. That is, when a customer wants to transfer money to another bank through NEFT in the morning hours it would be done the same day. However, if the instructions are received later in the day, the money would be transferred only on the next day.
Unlike NEFT, RTGS is instant that is it transfers money in real time and facilitates online transfer. Also, the RTGS works on gross settlement basis. According to experts, the RTGS system is the fastest possible inter-bank money transfer facility available today through secure banking channels in India. Under normal circumstances, the RTGS enables the beneficiary bank's branch to receive the funds in real time almost immediately after the funds are transferred by the remitting bank.
RTGS is accessible to the customers from 9 am to 3 pm on weekdays and 9 am to 12 noon on Saturdays. For inter-bank transactions it is open from 9 am to 5 pm on weekdays and from 9 am to 12 noon on Saturdays.