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Abstract
Retail Payments are essential component of overall payment system of any country. As retail payments are larger in volume with comparatively smaller transaction size, specialized separate products are used to carry out these payments all over the world. In India there are basically three types of specialized retail payments products - National Electronic Fund Transfer (NEFT), Immediate Payments System (IMPS) and National Automated Clearing House (NACH), that are popular amongst its people. While NACH is mostly preferred amongst the corporate and institutions mainly for bulk fund transfers, NEFT and IMPS are most preferred instruments for fund transfer in the country. The latest data on volume and value of transactions carried out through these two modes suggest that the IMPS is gaining its edge over NEFT, mainly because of its advantage due to accessibility, multi-modes and real time payments. This paper makes a comparative study of payments trends through these two instruments in India.