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

Reserve Bank of India Act, 1934 – Part-II – Section 17 to 19

The Reserve Bank of India Act, 1934 provides the statutory basis of the functioning of the Reserve Bank of India (RBI). In a series of articles, we will briefly go through the provisions of RBI Act, 1934. This is the second article in the series.  Section 17 – Business which the Bank may transact RBI shall be authorized to carry on and transact the several kinds of business hereinafter specified, namely – 17(1) – Accept deposit without interest from the Central / State Government, local authorities, banks and any other persons. 17(1A) – Accept deposit, repayable with interest, from banks or any other person under the Standing Deposit Facility Scheme, as approved by the Central Board, for the purposes of liquidity management.   Bills of Exchange (B/E) & Promissory Note (PN) Bearing 2 or more good signatures, one of which shall be of B/E & PN arising out of Maturing within 17(2)(a) Purchase, sale and rediscou...
Post a Comment
Read more

Reserve Bank of India Act, 1934 – Part-I – Preamble and Section 1 to 13

The Reserve Bank of India Act, 1934 provides the statutory basis of the functioning of the Reserve Bank of India (RBI). In a series of articles, we will briefly go through the provisions of RBI Act, 1934. This is the first article in the series. Preamble of the Act RBI to – Regulate the issue of bank notes. Keep reserves for monetary stability in India. Operate currency and credit system of the country to its advantage. The primary objective of the monetary policy is to maintain price stability while keeping in mind the objective of growth. Chapter I – Preliminary Section 1 – Short title, extent and commencement 1(1) – This Act may be called the Reserve Bank of India Act, 1934. 1(2) – The Act extends to whole of India. Chapter II - Incorporation, Capital, Management and Business Section 3 – Establishment and incorporation of Reserve Bank 3(1) – RBI to take over management of the currency from the Central Government. 3(2) – RBI to have perpetual succession, common seal, and shall by...
Post a Comment
Read more

Reserve Bank of India Act, 1934 – Part-III – Section 20 to 40

The Reserve Bank of India Act, 1934 provides the statutory basis of the functioning of the Reserve Bank of India (RBI). In a series of articles, we will briefly go through the provisions of RBI Act, 1934. This is the third article in the series.  Chapter III - Central Banking Functions Section 20 – Obligation of the Bank to transact Government business RBI shall undertake – To accept monies for account of the Central Government and to make payments up to the amount standing to the credit of its account, and to carry out its exchange, remittance and other banking operations. Management of the public debt of the Union. Section 21 – Bank to have the right to transact Government business in India The Central Government shall entrust RBI with – All its money, remittance, exchange and banking transactions in India, and shall deposit free of interest all its cash balances with RBI. The Central Government may carry on money transactions at places where RBI has no branches or agencies and m...
Post a Comment
Read more

Reserve Bank of India Act, 1934 – Part-IV – Section 42 to 45

The Reserve Bank of India Act, 1934 provides the statutory basis of the functioning of the Reserve Bank of India (RBI). In a series of articles, we will briefly go through the provisions of RBI Act, 1934. This is the fourth article in the series.  Section 42 – Cash reserves of scheduled banks to be kept with the Bank 42(1) – Every bank included in the Second Schedule shall maintain with RBI an average daily balance at a percent (notified by RBI) of its total demand and time liabilities in India. 42(1A) – RBI may direct every scheduled bank to maintain with RBI, in addition to the balance prescribed under Section 42(1), an additional average daily balance at a rate (specified by RBI). 42(1C) – RBI may specify any transaction or class of transactions to be regarded as liability in India of a scheduled bank. If any question arises as to whether any transaction or class of transactions shall be regarded as liability in India of a schedule bank, the decision of RBI thereon shall be fina...
Post a Comment
Read more

Reserve Bank of India Act, 1934 – Part-V – Section 45B to 45JA

The Reserve Bank of India Act, 1934 provides the statutory basis of the functioning of the Reserve Bank of India (RBI). In a series of articles, we will briefly go through the provisions of RBI Act, 1934. This is the fifth article in the series.  Chapter IIIA - Collection and Furnishing of Credit Information Section 45B – Power of Bank to collect credit information RBI may collect credit information from banking companies and furnish it to any banking company in accordance with section 45D. Section 45C – Power to call for returns containing credit information RBI may direct any banking company to submit statements relating to credit information. Section 45D – Procedure for furnishing credit information to banking companies A banking company may apply to RBI to provide credit information. RBI shall furnish the requested credit information without disclosing the names of the banking companies which have submitted the information. RBI may levy fees of up to Rs.25 for furnishing credit...
Post a Comment
Read more