IMPS (Immediate Payment Service) and NEFT (National Electronic Funds Transfer) are both popular payment systems in India, but they have some key differences:
- *Processing Time*: IMPS is a real-time payment system, meaning the funds are transferred immediately. NEFT, on the other hand, is a batch-based system, where transactions are processed in batches at regular intervals.
- *Transfer Limit*: IMPS typically has a lower transfer limit compared to NEFT. IMPS allows for transfers up to ₹2 lakhs, while NEFT allows for transfers up to ₹50 lakhs.
- *Charges*: IMPS transactions are typically charged between ₹2.50 to ₹25, depending on the amount transferred. NEFT transactions are also charged, but the fees are typically lower, ranging from ₹2.50 to ₹5.
- *Availability*: IMPS is available 24/7, including holidays, while NEFT is available only during banking hours and is not available on holidays.
In summary, IMPS is a faster, more convenient option for smaller transactions, while NEFT is better suited for larger transactions that don't require immediate processing.