What is NEFT?
- The full form of NEFT is NATIONAL ELECTRONIC FUND TRANSFER.
- NEFT came into existence in 2005.
- NEFT is a modification of Special Electronic Fund Transfer (SEFT).
- NEFT is an online fund transfer activity through the electronic wire.
- NEFT is used nationwide by individuals or institutions.
- Only NEFT enabled bank branches can transact.
- The amount does not immediately transfer but the Transactions are done in specific batches during fixed time.
- Those who have not bank account can use NEFT by depositing cash to NEFT enabled branches.
- NEFT is both secure and convenient.
- NEFT take place 11 hours on weekdays, 5 hours on Saturday and Sunday there is no NEFT transactions.
- No limit for minimum or maximum transfer amount.
WHAT IS IMPS?
- The full form of IMPS is IMMEDIATE PAYMENT SERVICE.
- IMPS is a real time 24×7 inter-bank transfer of funds through smartphones.
- It came into existence in 2010.
- This facility is provided by National Payment Corporation of India through National Financial Switch.
- With the help of IMPS, one can access bank account anytime, anywhere easily using mobile.
- It is customer-centric banking service used by bank customers by using a mobile phone.
- It is safe and economic.
- The bank charges fees for this type of facility and it differs from bank to bank.
- In IMPS transactions are done all the days. (Means no holiday)
- Both, the receiver and sender need to be registered with mobile banking service of Bank and get a mobile money Identifier (MMI) code. Which is comprised of seven digits issued by the bank.
- Bank account number, MMID code and IFSC code is necessary to complete the transaction.
Comparison between NEFT and IMPS
|Meaning||It is an electronic payment system used nationwide by banks to transfer money.||It is an instant interbank mobile transfer facility by using a smartphone.|
|Settlement Time||It means it takes some time to transfer money.||It is an instant facility.|
|Working days||It operates Monday to Saturday except for 2nd and 4th Saturday, Sunday and a holiday.||It works on all days means 24×7 a day.|
|Transfer limit||No limit for minimum and maximum transfer.||No limit for minimum transfer and for maximum it is Rs.200000|
|No. of transactions||12 settlements per working day.||Transactions occur continuously.|
|speed||It is slower as compare to IMPS.||It is very fast.|
|category||It comes under electronic banking.||It comes under mobile banking.|
|Fees||It is fixed by banks.||Differs from bank to bank.|
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