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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


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