Understanding Banking Terms: Full Form of NEFT, RTGS, IMPS, and FD 

Most of us are familiar with using UPI apps like Google Pay or PhonePe for everyday transactions. But what happens when you need to transfer larger amounts or make a specific kind of payment? Several banking options exist to serve such needs. IMPS, NEFT, and RTGS are some popular banking options that you must be aware of. IMPS allows for quick and convenient money transfers 24/7, while NEFT ensures secure bank-to-bank payments. On the other hand, RTGS is designed for high-value transactions. But what is the full form of IMPS, RTGS, and NEFT, and which one can you use if your Google Pay isn’t working?

In this blog, we will learn about the following –

• NEFT full form in banking
• RTGS full form in banking
• IMPS full form in banking
• FD full form in banking

With the right knowledge, you can dash towards your financial goals. Don’t just settle for the basics; it’s time to take your banking knowledge to new heights.

Before we even get into the details of NEFT, RTGS and IMPS, it’s important to know some basic safety tips before you initiate any fund transfer.

Keep these 7 tips in mind.

1. Verify Beneficiary Details Carefully

Double-check the beneficiary’s name, account number, and IFSC code before confirming the transfer. Mistakes in these details can result in the funds being sent to the wrong account, which may be hard to reverse.

2. Use Trusted Devices and Networks

Initiate transfers only from secure devices (your personal computer or mobile) and avoid using public Wi-Fi. Always ensure you are using HTTPS websites when conducting banking transactions online.

3. Enable Two-Factor Authentication (2FA)

Ensure your bank account has two-factor authentication enabled for an extra layer of security. This adds a second step (like a one-time password) to verify your identity during the transaction.

4. Keep Your Bank Details Confidential

Never share your bank account number, PIN, or passwords with anyone. Be cautious of phishing attempts—avoid clicking on suspicious links or emails that ask for sensitive information.

5. Check Transaction Limits

Be aware of your transaction limits (both daily and per transfer) and ensure they match the amount you intend to transfer. Exceeding these limits can cause errors or delays, and in some cases, lead to additional verification.

6. Monitor Account Activity Regularly

After initiating a transfer, check your bank account for any unauthorized activity. If you notice any suspicious transactions, report them to your bank immediately.

7. Use Bank’s Official Channels

Initiate transfers only through official mobile banking apps or net banking platforms. Avoid third-party websites or unverified apps to reduce the risk of fraud.

Now, let’s dive into the details.

NEFT Full Form in Banking: How It Works and Benefits

The full form of NEFT in banking is National Electronic Funds Transfer. It is a digital payment system in India managed by the Reserve Bank of India (RBI). Unlike other payment systems, NEFT ensures fast, secure transactions with confirmation sent via SMS or email.

The system works nationwide. It helps in connecting bank branches to facilitate transfers anytime, whether you’re at home, at work, or even on the move via Internet banking.

How to Transfer Money through NEFT?

Here’s how an NEFT transaction typically works if you plan to do it online:

1. Initiate the Transfer: You can start by logging into your bank’s internet or mobile banking app. Next, you need to provide the necessary details of the person or business you are sending money to, such as:

• Beneficiary’s Name
• Beneficiary’s Bank Name
• Beneficiary’s Account Number

2. Confirm the Details: After filling in the details, you must double-check to ensure everything is correct.

Caution!! A mistake here could lead to your money being sent to the wrong account.

1. Complete the Transaction: You must authorise the transaction and submit your request. You will receive a confirmation via SMS or email once the money is credited to the beneficiary’s account.

Who can use NEFT?

People, businesses, and corporations with accounts at any bank that is part of the NEFT system can transfer funds electronically to anyone—individuals, businesses, or corporations—holding accounts at other participating banks across the country.

NEFT Charges and Limits
The NEFT (National Electronic Funds Transfer) system doesn’t impose any minimum or maximum limits on fund transfers. However, individual banks may set their own limits based on factors like security protocols, risk management, and operational needs. For instance, personal account holders often have a transaction limit of ₹10 lakh, while businesses and corporates might have higher limits.

NEFT Charges for Outward Transactions

Transaction Amount	Maximum Charges (Excluding GST)
Up to ₹10,000	₹2.50
Above ₹10,000 and up to ₹1 lakh	₹5.00
Above ₹1 lakh and up to ₹2 lakhs	₹15.00
Above ₹2 lakhs	₹25.00

NEFT Charges for Inward Transactions

There are no charges for inward transactions at destination bank branches when crediting beneficiary accounts.

Discover the daily NEFT limits for 2024!

NEFT Timings

Here are the latest NEFT timings according to RBI guidelines:

Mode	Availability
Online NEFT	24/7, including bank holidays
Offline NEFT	Available during bank working hours, except on 2nd and 4th Saturdays of the month

Benefits of NEFT

NEFT has several advantages that make it a popular choice for fund transfers:

1. NEFT is accessible 24/7.
2. Beneficiaries don’t need to visit a bank branch to deposit physical instruments. Remitters can initiate transfers from home or work using internet banking, if available.
3. Besides fund transfers, NEFT can facilitate various transactions, including credit card payments, loan EMIs, and inward foreign exchange remittances.
4. Remitters receive positive confirmation via SMS or email once the funds are credited to the beneficiary’s account.
5. The RBI does not impose any charges on banks for NEFT transactions.
6. Transactions made through NEFT have legal backing.
7. The system also allows one-way fund transfers from India to Nepal.

RTGS Full Form in Banking: Real-Time Transfers and High-Value Transactions

The full form of RTGS in banking is Real-Time Gross Settlement. This system allows for continuous and immediate processing of fund transfers. “Real Time” means that transactions are processed immediately. “Gross Settlement” means that each funds transfer undergoes individual settlement.

The funds are settled in the books of the Reserve Bank of India (RBI). This ensures the security and finality of transactions.

Mode	Availability
Online RTGS	24/7, including bank holidays
Offline RTGS	Available during bank working hours

How to Transfer Money through RTGS?

To begin, you must give your bank the recipient’s details, such as their bank name, account number, and the amount you want to send.

1. Initiate Transaction:

You must provide your bank with:

• Amount to send
• Your account number
• Beneficiary’s bank name and branch
• Beneficiary’s account number and name
• IFSC code of the beneficiary’s bank branch

1. Real-Time Processing:Your bank processes the payment immediately. The funds are transferred directly to the recipient’s account.
2. Confirmation:Your bank receives confirmation once the money is credited to the beneficiary’s account. This is done within 30 minutes.

Ways to Initiate RTGS Transactions

There are three ways to do RTGS:

• Online Banking: Log into your bank’s website, select RTGS option, enter the beneficiary details (name, amount, bank details), and submit.
• Mobile Banking Apps: You can also use your bank’s mobile app to make RTGS transfers quickly.
• At the Bank: You can visit your bank branch, fill out a form, and the bank staff will help process your RTGS transfer.

Details Required for RTGS:

• The exact amount you want to send.
• The bank account from which you’ll send the money.
• Recipient’s Details:
  • Their full name.
  • Their account number.
  • The name of their bank.
  • Their bank’s IFSC code (a code unique to their bank branch).

RTGS Transaction Limits and Charges 

Here are the limits for RTGS transactions as per the guidelines of RBI:

Transaction Type	Limit
Minimum Transaction Amount	₹2,00,000
Maximum Transaction Amount	No upper ceiling set by RBI
Charges for Outward Transactions	₹2,00,000 to ₹5,00,000: Not exceeding ₹25 (exclusive of tax)
Charges for Outward Transactions	Above ₹5,00,000: Not exceeding ₹50 (exclusive of tax)
Inward Transactions	Free
Time for Credit to Beneficiary Account	Within 30 minutes of receiving the funds transfer message
Return of Failed Transactions	Funds must be returned within 1 hour or before the end of RTGS business day

Benefits of Using RTGS

RTGS has several advantages for transferring funds:

1. You can use RTGS 24/7.
2. Funds are transferred to the beneficiary’s account in real-time.
3. You don’t have to use physical cheques or demand drafts.
4. You can start transfers from home or work using internet banking if your bank provides this option.
5. The RBI has set limits on transaction fees, making it cost-effective.
6. Transactions have legal backing.

Differences Between RTGS and NEFT

Both RTGS and NEFT are electronic fund transfer systems. 

However, they operate differently. 

NEFT processes transactions in batches at scheduled intervals. Every batch is released in a segment of 30mins. Thus, NEFT transactions typically take two hours to reflect. 

RTGS, on the other hand, processes each transaction individually in real-time. 

Therefore, RTGS is preferred for urgent, high-value transfers, while NEFT is suitable for smaller amounts.

IMPS Full Form in Banking: Instant Payments and Key Features

The full form of IMPS in Banking is Immediate Payment Service. IMPS is a fast and secure way to transfer money between banks in India. Launched on November 22, 2010, by the National Payments Corporation of India (NPCI), it allows users to send and receive money instantly, 24/7, through various channels such as mobile phone app, the internet, ATMs, etc.

How to Transfer Money through IMPS?

Here is a simple process followed for IMPS transactions:

1. Registration: Both the sender (remitter) and receiver (beneficiary) need to register with their banks for mobile banking services to use IMPS. They will get a unique Mobile Money Identifier (MMID) linked to their mobile number.
2. Sending Money:
   • The sender selects the IMPS option on their mobile app or SMS.
   • They enter the recipient’s mobile number, MMID, the amount, and their MPIN.
   • After confirmation, the sender receives an SMS notification about the transaction.
3. Receiving Money:
   • The receiver must also register their mobile number with the bank and obtain an MMID.
   • They will receive an SMS once the money is credited to their account.

How to Transfer Funds through IMPS

You can use IMPS in two ways through your mobile banking app or internet banking:

• Person-to-Person (P2P): You can transfer money using mobile number and MMID.
• Person-to-Account (P2A): You can transfer money using account number and IFSC code (International Financial Services Code).

IMPS Timings, Charges and Transaction Limits

The National Payments Corporation of India (NPCI) has set a maximum daily limit of ₹5 lakh for IMPS (Immediate Payment Service) transactions. However, individual banks may set their own limits, typically ranging between ₹1 lakh and ₹5 lakh.

Here are the IMPS charges and transfer time as of 2024:

IMPS Transfer Time:

• Availability: IMPS operates 24/7 for all bank account holders.
• Transfer Speed: Funds are transferred instantly upon transaction approval by the sender’s bank.
• Resolution Time: In rare cases of transaction failure, void, or timeout, resolution may take up to 5 working days.

Benefits and Features of IMPS

IMPS is beneficial because it is fast, available 24/7, secure, and cost-effective. Users can make transactions using various channels, including a savings app, internet banking, ATMs, etc.

Currently, over 900 banks and Prepaid Payment Instrument (PPI) providers support IMPS.

• Transactions are secure, using methods like mobile numbers and MPINs or card details and ATM PINs.
• The maximum amount you can transfer in one transaction is ₹5 lakh for most channels.
• To use IMPS, you need to provide the receiver’s details.
• A single mobile number can be linked to multiple bank accounts.
• Beneficiaries do not need to register unless they are receiving money via MMID.

However, if you change your mobile number or telecom service provider, you will need to update your registration. It’s widely used for online shopping, paying bills, and transferring funds between friends and family.

Comparison of NEFT, RTGS, and IMPS

While NEFT, RTGS, and IMPS are all electronic fund transfer systems, they serve different purposes:

The Impact of GST on Transaction Fees

Implementation of Goods and Services Tax (GST) in India has influenced the transaction fees associated with electronic fund transfer services such as NEFT, RTGS, and IMPS. Here’s how GST affects these services:

While these are generic charges, it is advisable to check with your bank for specific impacts.

FD Full Form in Banking: Secure Investments and Guaranteed Returns

The full form of FD in banking is Fixed Deposit. It is the most common investment tool offered by banks, where money is deposited for a fixed tenure at a guaranteed interest rate.

In an FD, the money you invest is locked in for a set period. The bank pays a fixed interest on the deposit, and you can withdraw the funds once the tenure ends.

Types of Fixed Deposits

There are various types of FDs available for users:

1. Standard Fixed Deposit: This is a basic type of fixed deposit available for Resident Indians, businesses, and families. 

It offers higher interest rates than regular savings accounts.

2. Tax-Saving Fixed Deposit: This FD allows you to claim tax deductions up to ₹1.5 lakh under Section 80C. 

It comes with a 5-year lock-in period, so you can’t withdraw your money before then.

3. Floating Rate Fixed Deposit: In this scheme, the interest rate changes based on a reference rate like the RBI’s Repo Rate. 

This means your returns can increase if interest rates go up, giving you potential higher earnings over time.

4. Flexi Fixed Deposit: A flexi FD links to your savings or current account, allowing you to withdraw funds when needed while still earning FD interest on the remaining balance.

 It combines higher liquidity with better interest rates than regular savings accounts.

5. Cumulative Fixed Deposit: This type of FD compounds your interest by adding it to the principal amount. You can receive your earnings only when the deposit matures.

6. Non-Cumulative Fixed Deposit: In this type of fixed deposit, you can receive interest at regular intervals—monthly, quarterly, or yearly. 

7. Senior Citizen Fixed Deposit: This FD is specifically available for individuals aged 60 and above. It offers 0.5%- 0.75% more interest rate than regular FDs. 

How to Open an FD Online?

You can open a fixed deposit account online using your bank’s internet banking system, or mobile app or, you can also visit your bank’s branch.

When you open a fixed deposit at a bank where you already have an account, you usually won’t need to provide new documents. The bank already has your KYC (Know Your Customer) details.

If you’re a new customer, you’ll need to provide:

• Identity Proof (choose any one):
  • Aadhaar Card
  • PAN Card
  • Driver’s License
  • Passport
• Address Proof (any of the above can also serve as address proof)
• Recent Coloured Passport-sized Photograph

Features and Benefits of Fixed Deposits (FDs)

Fixed deposits are a safe investment option with tax-saving benefits under specific schemes.

1. The interest rate is fixed and remains constant throughout the tenure of the deposit.
2. FDs can have varying tenures, depending on the bank’s policies. The common tenures are 7 days, 30 days, 1 year, 3 years, etc.
3. FDs don’t permit early withdrawal. If you do, you’ll likely face penalties.
4. Fixed deposits pay the Interest monthly, quarterly, annually, or at maturity, depending on the account holder’s preference.

After learning about NEFT, RTGS, IMPS, and FD, it’s essential to find the best app to save money. 

How about a banking platform that makes managing these services more efficient?

How Jumpp Makes Banking Easier

Jumpp offers a user-friendly experience. Whether you need to make an IMPS transfer or schedule an NEFT payment, the process is simple. After completing full KYC, you can also manage RTGS transactions seamlessly and invest your savings in FDs.

Take the leap with Jumpp today and explore a smarter way to do banking!

Conclusion

Understanding the full form of NEFT, full form of RTGS, full form of IMPS, and FD full form is key to understanding the modern banking system. 

These services serve different purposes—whether you’re making instant transfers or investing your savings, you must use these banking tools wisely.

FAQs