Skip to main content

Immediate Payment Service (IMPS) vs Unified Payment Interface (UPI)

There are various options for online payments and fund transfers in India. In this article we will learn about two such options – Immediate Payment Service (IMPS) and Unified Payment Interface (UPI).

 

 Immediate Payment Service (IMPS) Unified Payment Interface (UPI)
Meaning IMPS is offered by National Payments Corporation of India (NPCI) which allows fund transfer through banks and Prepaid Payment Instrument (PPI) Issuers in India. UPI is developed by National Payments Corporation of India (NPCI) which facilitates linking of multiple bank accounts and Prepaid Payment Instrument (PPI) Wallets into a single mobile application.
Nature IMPS is a credit-push service i.e. transactions can be originated by payer / remitter / sender only to pay / transfer / remit funds to beneficiary. UPI supports both ‘Pay Request’ (customer pushing funds to the intended beneficiary) and ‘Collect Request’ (customer pulling funds from the intended remitter).
Availability Available 24*365.
Timeline for Settlement Funds are transferred in real-time (i.e. immediately).
Transaction limits The upper limit is ₹5 lakh per transaction (for all channels except SMS and IVR). The upper limit is ₹1 lakh per transaction.
Prerequisites for transactions IMPS can be used through various channels.
  • For using IMPS on mobile or SMS or through net banking portal, the customer has to register for mobile / internet banking or SMS banking with his / her bank.
  • For using IMPS through Bank branch, IVR and ATM channels, no prior registration is required.
The funds can be transferred to beneficiary using his / her –
  • Bank account number and IFSC
  • Mobile number and MMID
  • Aadhaar number
 The remitter has to register on UPI mobile application and generate virtual payment address (UPI ID).

The funds can be transferred to beneficiary using his / her –
  • Mobile number
  • Virtual payment address (UPI ID)
  • QR code
  • Bank account number and IFSC
  • Aadhaar number

What is Mobile Money Identifier (MMID)?

Mobile Money Identifier (MMID) is a 7 digit number, issued by banks. Combination of mobile number & MMID is uniquely linked with an account number and helps in identifying the beneficiary. Different MMID’s can be linked to same mobile number. 

What is UPI Personal Identification Number (UPI-PIN)?

UPI Personal Identification Number (UPI-PIN) is a 4-6 digit pass code created / set during first time registration on UPI mobile application. This UPI-PIN is used to authorize UPI transactions. 

What is Indian Financial System Code (IFSC)?

‘Indian Financial System Code (IFSC)’ is an alpha-numeric code that uniquely identifies a bank-branch participating in the NEFT / RTGS system. This is an 11-character code – first 4 characters (alphabets) represent bank, 5th character is always zero (0), and last 6 characters (alphabets or numerals) represent bank branch.

List of bank-wise branches and their IFSCs is available on the website of RBI at https://rbi.org.in/Scripts/IFSCMICRDetails.aspx.


References

National Payments Corporation of India . (n.d.). 'IMPS (Immediate Payment Service) Product Overview'. Retrieved from https://www.npci.org.in/what-we-do/imps/product-overview

National Payments Corporation of India. (n.d.). 'IMPS FAQs'. Retrieved from https://www.npci.org.in/what-we-do/imps/faqs

National Payments Corporation of India. (n.d.). 'Unified Payments Interface (UPI) Product Overview'. Retrieved from https://www.npci.org.in/what-we-do/upi/product-overview

National Payments Corporation of India. (n.d.). 'UPI FAQs'. Retrieved from https://www.npci.org.in/what-we-do/upi/faqs

Reserve Bank of India. (2022, October 31). 'FAQ - National Electronic Funds Transfer (NEFT) System'. Retrieved from https://www.rbi.org.in/Scripts/FAQView.aspx?Id=60


Follow at - Telegram   Instagram   LinkedIn   Twitter

Labels:

Comments

Post a Comment

Popular Posts

Credit Facilities – Lending against Gold and Silver Collateral

Reserve Bank of India (RBI) has issued directions on credit facilities offered by various regulated entities. This article summarises the directions applicable to lending against gold and silver collateral. To whom are the directions applicable? The directions are applicable to the following Regulated Entities (REs) – Commercial Banks  Small Finance Banks (SFBs) Local Area Banks (LABs) Regional Rural Banks (RRBs) Primary (Urban) Co-operative Banks (UCBs) Rural Co-operative Banks – State Co-operative Banks (StCBs) Central Co-operative Banks (CCBs) Non-Banking Financial Companies (NBFCs) for all layers – Deposit taking NBFC (NBFC-D) NBFC-Investment and Credit Companies (NBFC-ICC) NBFC-Factor  NBFC-Micro Finance Institutions (NBFC-MFI)  NBFC-Infrastructure Finance Company (NBFC-IFC)  Infrastructure Debt Fund-NBFC (IDF-NBFC)  Housing Finance Company (HFC)  To whom are the directions partially applicable? The prudential regulations are not applicable to ‘NBFCs-B...
Post a Comment
Read more

Credit Facilities – Digital Lending Guidelines

Reserve Bank of India (RBI) has issued directions on credit facilities offered by various regulated entities. This article summarises the directions applicable to digital lending. To whom are the directions applicable? The directions are applicable to the following Regulated Entities (REs) – Commercial Banks  Small Finance Banks (SFBs) Local Area Banks (LABs) Regional Rural Banks (RRBs) Primary (Urban) Co-operative Banks (UCBs) Rural Co-operative Banks – State Co-operative Banks (StCBs) Central Co-operative Banks (CCBs) All India Financial Institutions (AIFIs) regulated by RBI – Export Import Bank of India (EXIM Bank) National Bank for Agriculture and Rural Development (NABARD) National Housing Bank (NHB) Small Industries Development Bank of India (SIDBI) National Bank for Financing Infrastructure and Development (NaBFID) Non-Banking Financial Companies (NBFCs) for all layers – Deposit taking NBFC (NBFC-D) NBFC-Investment and Credit Companies (NBFC-ICC) NBFC-Factor  NBFC-Micro...
Post a Comment
Read more

Guidelines on Money Changing Activities (Updated as on May 06, 2026)

Reserve Bank of India (RBI) has updated the guidelines on money changing activities. What are the guidelines for appointment of agents / franchisee? RBI had permitted Authorised Dealers (ADs) Category - I, ADs Category - II and Full Fledged Money Changers (FFMCs) to enter into agency or franchisee agreements at their option for the purpose of carrying restricted money changing business i.e. conversion of foreign currency notes, coins or travellers' cheques into Indian Rupees (INR).  A franchisee can be any entity which has a place of business and a minimum Net Owned Funds of ₹10 lakh.  Franchisees can undertake only restricted money changing business. Franchisees of AD Category - I / AD Category - II / FFMCs functioning within 10 kms from the borders of Pakistan and Bangladesh may also sell the currency of the bordering country, with the prior approval of RBI.  Other franchisees of AD Category - I / AD Category - II / FFMCs cannot sell foreign currency. An authorised pers...
Post a Comment
Read more

Credit Facilities – Finance to Non-Banking Financial Companies (NBFCs)

Reserve Bank of India (RBI) has issued directions on credit facilities offered by various regulated entities. This article summarises the directions applicable in respect of finance to Non-Banking Financial Companies (NBFCs). To whom are the directions applicable? The directions are applicable to the following Regulated Entities (REs) – Commercial Banks  Small Finance Banks (SFBs) Primary (Urban) Co-operative Banks (UCBs) All India Financial Institutions (AIFIs) regulated by RBI – Export Import Bank of India (EXIM Bank) National Bank for Agriculture and Rural Development (NABARD) National Housing Bank (NHB) Small Industries Development Bank of India (SIDBI) National Bank for Financing Infrastructure and Development (NaBFID) What are the conditions on finance to NBFCs? Commercial Banks and SFBs The bank shall extend need based working capital facilities as well as term loans to NBFCs registered with the RBI and engaged in infrastructure financing, equipment leasing, hire-purchase, l...
Post a Comment
Read more

Regulations for Authorised Persons

Reserve Bank of India (RBI) has issued a revised framework for authorisation of any person as an Authorised Person under the Foreign Exchange Management Act (FEMA), 1999. Who can act as an Authorised Person? No person shall act as an authorised person without obtaining an authorisation from the RBI. A person seeking authorisation as an authorised person may apply to the RBI through the PRAVAAH portal (https://pravaah.rbi.org.in) to the regional office concerned of the RBI under whose jurisdiction the registered office of the applicant is established. RBI shall consider applications for fresh authorisation under 3 categories, namely, Authorised Dealer (AD) Category-I, AD Category-II and AD Category-III. Which entities are eligible to act as an Authorised Person? Category Eligible entities AD Category-I A bank licensed by the RBI. AD Category-II A bank licensed by the RBI or a Non-Banking Financial Company (NBFC) registered with the RB...
Post a Comment
Read more