Short answer: For everyday payments, use UPI, it is instant, free, and app-based. For a large transfer of ₹2 lakh or more, use RTGS. For instant transfers up to ₹5 lakh, use IMPS. For routine, non-urgent transfers of any amount, NEFT works well and is free online. The right choice depends on the amount, how fast you need it, and the timing.
India has four main ways to move money between bank accounts, and each suits a different job. Here is how to choose in seconds.
The four methods at a glance
| Method | Speed | Limit | Timing | Charges (online) |
|---|---|---|---|---|
| UPI | Instant | Usually up to ₹1 lakh per transaction (higher for some categories) | 24×7 | Free |
| IMPS | Instant | Up to ₹5 lakh (set by your bank) | 24×7 | Small charge may apply |
| NEFT | Minutes (half-hourly batches) | No limit | 24×7 | Free |
| RTGS | Real-time | Minimum ₹2 lakh, no upper limit | 24×7 | Free |
Limits and charges are set by the RBI, NPCI, and individual banks and can change, so confirm current values in your bank’s app before a large transfer.
UPI: best for everyday payments
UPI (Unified Payments Interface), run by NPCI, is the go-to for daily transactions. It is instant, free, and works through an app using a UPI ID, QR code, or mobile number, no account number or IFSC needed. Limits are typically up to ₹1 lakh per transaction (higher for certain categories).
Use UPI for: paying shops, splitting bills, sending money to friends, and most everyday transfers.
IMPS: best for instant transfers up to ₹5 lakh
IMPS (Immediate Payment Service), also run by NPCI, was India’s original 24×7 instant transfer. It settles in seconds, anytime, and supports amounts up to ₹5 lakh (your bank sets the exact cap). Unlike NEFT and RTGS, it may carry a small charge. It uses account number and IFSC.
Use IMPS for: an instant transfer that is too large for a single UPI payment, at any time of day or night.
NEFT: best for routine transfers of any amount
NEFT (National Electronic Funds Transfer), operated by the RBI, settles transactions in half-hourly batches, so it is quick but not always instant. It has no minimum or maximum limit and is free online, available 24×7. It uses account number and IFSC.
Use NEFT for: routine, non-urgent transfers where a few minutes’ wait is fine, like a scheduled payment or a regular transfer.
RTGS: best for high-value transfers
RTGS (Real-Time Gross Settlement), also run by the RBI, settles each transaction individually and in real time. Its defining feature is the ₹2 lakh minimum, so it is built for large payments. There is no RBI-set maximum (banks may cap it), and it is free online and available 24×7.
Use RTGS for: high-value transfers of ₹2 lakh or more, like a property payment or a large business transaction.
A simple rule for choosing
- Everyday, small payment? UPI.
- Instant, up to ₹5 lakh? IMPS.
- Large, ₹2 lakh and above? RTGS.
- Routine, any amount, not urgent? NEFT.
Most people use a mix, UPI for daily life, and NEFT, IMPS, or RTGS for larger interbank transfers depending on the amount and urgency.
Frequently asked questions
What is the difference between NEFT, RTGS, IMPS, and UPI?
They differ in speed, limits, and use. UPI and IMPS are instant; NEFT settles in half-hourly batches; RTGS settles in real time for high-value transfers of ₹2 lakh and above. UPI is app-based and best for everyday payments.
Which is best for a large transfer?
RTGS, which is designed for high-value transfers of ₹2 lakh and above with real-time settlement. For instant transfers up to ₹5 lakh, IMPS also works.
What is the minimum amount for RTGS?
RTGS requires a minimum of ₹2 lakh per transaction. For smaller amounts, use NEFT, IMPS, or UPI.
Are these transfer methods free?
NEFT and RTGS are free for online transfers, and UPI is free. IMPS may carry a small charge depending on your bank and the amount. Branch transactions may have fees.
Can I transfer money at night or on holidays?
Yes. UPI, IMPS, NEFT, and RTGS are all available 24×7, including weekends and holidays, though banks may set their own conditions for very large transfers.
With Jupiter: send money via UPI on Payments and manage transfers from your Savings Account. Related reading: how to stay safe from UPI fraud.
Move money the smart way
Knowing which method to use saves you time and charges. With Jupiter, you can send money via UPI and manage your transfers easily, all from one app, so paying and transferring is simple whatever the amount. Jupiter is the 1-app for everything money.
Limits, timings, and charges are set by the RBI, NPCI, and individual banks and are subject to change. Always confirm current values with your bank before a large transfer. This article is general information, not financial advice.
