16 July 2024

UPI Vs IMPS | Difference | Comparison

In India two widely utilized electronic fund transfer services are Unified payment service(UPI) and  immediate payment service(IMPS). Together we will look at how IMPS and UPI differ from one another and learn about their difference functionalities.


What is UPI?

The national payment corporation of India(NPCI) is the organization behind this government backed programmed. it provides a simplified method for mobile device based instantaneous fund transfer across bank accounts. Like IMPS, UPI claims to be accessible around the clock. But because it can only handle up to Rs 1 lakh in transaction at a time, it is prefect for minor payment and regular bills. 

What is IMPS?

IMPS stands for immediate payment service. The national payment corporation of India provides IMPS.  It is real-time payment service is IMPS . One of the best online fund transfer options is frequently cited as IMPS. While some also offer SMS services, the majority of IMPS services are accessible online.  It permits the transmission of money through a bank account or prepaid payment provider. Through ATMs, Net banking and mobile banking, IMPS enables fast and secure money transfer up to Rs. 5 lakhs.
 

UPI Vs IMPS : Which one is better for you?

1.Full form

UPI stands for unified payments interface, IMPS stands for immediate payments service. 

 2.Ease of transaction

UPI uses only virtual payment(VPA) for convenient transactions. IMPS requires detailed data entry(Name, account, number, IFSC). 

3. Definition

UPI is an instant real time payments system that instantly transfer funds between two banks, IMPS is an electronic funds transfer system that allows inter and intra bank transfers. 

4. Minimum transfer limit

UPI : No minimum limit, IMPS: 1.

5. Maximum transfer limit

UPI: ₹ 1 Lakh, IMPS: ₹ 5 Lakh(per transaction).

6. Transfer time

UPI offers quick transfer without payee registration or wait time, But the IMPS is allow instant transfer but require registration and wait time for new payees. 

7. Bank account requirement

UPI allow receiving money on UPI wallet, without the need for a bank account, While IMPS need to be requires a bank account for transfers. 

8. Money collector

UPI enable requesting for money collection, thus enhancing financial credibility, IMPS only supports transfers to registered payees, lacks the facility to request money. 

9. Authentication details

UPI uses MPIN for authentication, enhancing security, While in IMPS relies on OTP for authentication. 

10. Beneficiary Addition

UPI is streamlines beneficiary addition through VPA usage, While the IMPS demands lengthy beneficiary details, such as bank account details, IFSC etc. 

11. App compatibility

UPI support linking multiple bank accounts in a single app, simplifying management, IMPS requires a dedicated app for debiting accounts. 

12. E - Commerce transaction

UPI facilitates e-commerce transaction, both B2B and B2C, whereas IMPS supports ecommerce transactions, both B2B and B2C. 

13. Transaction method

UPI payments require a smartphone and an app, While the IMPS money can be transferred through different methods, including account umber and IFSC code, SMS banking and MMID. 

14. Charges Range

There are currently no transaction fess for UPI payments, While in IMPS,  charges range from Rs. 3.50 to Rs. 15+ GST depending on the transaction amount. 

Conclusion

IMPS and UPI are two different but supportive foundation in the world of electronic fund transfers. UPI provide unparalleled accessibility and ease, particularly through mobile application, IMPS excels in processing transaction quickly and with larger transaction limits. 

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