Difference between UPI and IMPS fund transfers in India www.deekpay.com

IMPS(Instant Payment Service) and UPI(Unified Payment Interface of India) are two prominent digital payment systems in India. They are known for efficient, fast and hassle-free money transfers.IMPS supports real-time inter-bank transactions while UPI provides a seamless payment platform for peer-to-peer and merchant transactions.

What are IMPS and UPI?

In India, IMPS and UPI have become widely used electronic fund transfers, revolutionising the way people conduct financial transactions.

What is IMPS?IMPS is known for its speed and simplicity in facilitating seamless fund transfers between bank accounts. It operates 24x7 to ensure 24x7 availability to users.IMPS allows users to transfer funds up to Rs. 50 lakhs quickly and securely through mobile banking, internet banking and ATMs.

What is UPI?National Payments Corporation of India (Developed as a government-supported programme by NPCI, UPI provides a simplified mechanism for instant transfer of funds between bank accounts using mobile devices. Much like IMPS, UPI has 24/7 availability. However, UPI has a transaction limit of Rs 100,000 per transaction, making it ideal for small payments and daily expenses.

IMPS and UPI are soaring in popularity across India, fuelling the growth of digital payments in the country. These platforms not only simplify money transfers but also help reduce cash transactions and promote a cashless economy.

A significant difference between the two systems is the ease of linking multiple bank accounts to UPI.UPI Payment Gatewayoffers the unique advantage of allowing you to link multiple bank accounts to one UPI ID. This simplifies the payment process as you can choose which linked account to use for each transaction. In contrast, IMPS requires a separate registration for each bank account, which can be cumbersome for individuals with multiple accounts at different banks.

All in all, both IMPS and UPI are powerful online remittance tools that have played a key role in transforming the payments landscape in India. imps is favoured for its higher daily transaction limits, while UPI's flexibility in linking multiple bank accounts provides a unique convenience that imps lacks.

Recommended Reading:What is IMPS India?

Difference between IMPS and UPI

IMPS allows customers to transfer funds instantly between bank accounts using MMID (Mobile Money Identifier) and mobile phone numbers. UPI, on the other hand, is a more advanced system that allows seamless real-time fund transfers through a single mobile application, eliminating the need for multiple banking applications.

Function IMPSUPI transaction convenience requires entering detailed data (name, account number, IFSC). Uses only Virtual Payment Address (VPA) for transaction convenience. Application compatibility requires dedicated debit account application. Supports linking multiple bank accounts in a single application to simplify management. Transfer time allows instant transfers, but requires new payee registration and waiting time. Provides fast transfers without payee registration or wait time. Funds collection only supports transfers to registered payees; lacks the convenience of requesting money. Can request money collection, thereby increasing financial credibility. Smartphone requirements require a smartphone with the relevant app. Can be used on USSD-enabled mobile phones, reaching a wider range of users. Bank Account Requirement Requires a bank account to make transfers. Allows funds to be received via UPI Wallet without the need for a bank account. Authentication relies on OTP for authentication. Uses MPIN for authentication and enhanced security. Add beneficiaries to support B2B and B2C e-commerce transactions. Facilitate B2B and B2C e-commerce transactions. E-commerce transactions support B2B and B2C e-commerce transactions. Facilitate B2B and B2C e-commerce transactions. Transaction fee charges are above a certain limit (usually above Rs. 1,000) but may be changed as per RBI guidelines. Individuals making payments through UPI are not required to pay any fees. However, for transactions above Rs. 2,000 through prepaid instruments, merchants may be charged an interchange fee.

concluding remarks

IMPS is a real-time interbank electronic funds transfer system that allows users to make instant money transfers around the clock.IMPS is powered by the NPCI Launched in November 2010, it has played a key role in the development of digital payments.

On the other hand, UPI is a mobile-based payment system developed by NPCI that allows customers to use theVirtual Payment Address (VPA) to transfer money between bank accounts via mobile devices.UPI is popular among users for its ease of use and seamless integration with mobile banking applications.

IMPS and UPI are both secure.India Paymentssystems, which ensure the security of transactions. They are also cost-effective, with no or minimal fees for transactions, making them popular among customers. Ultimately, the best payment method will depend on individual needs and preferences.

Atpay - we are a professional provider of payment solutions and have been deeply involved for many years inIndia PaymentsWe have successfully provided payment functions for countless customers at home and abroad. We are fully confident in payment integration and high-risk payment processing, and welcome inquiries and exchanges.