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

Digital Payments – E-mandate Framework 2026

Reserve Bank of India (RBI) has issued e-mandate framework for digital payments. What is an e-mandate?  A mandate is a standard instruction that a customer provides to his / her issuing bank and other institutions allowing them to automatically debit the mentioned amount from his / her bank account. e-mandate is the electronic version of it. To whom shall the framework be applicable? The framework shall be applicable to Payment System Providers and Payment System Participants. To which transactions shall the framework be applicable? The framework shall be applicable to processing of recurring transactions, domestic or cross-border, using cards / Prepaid Payment Instrument (PPI) / Unified Payments Interface (UPI). What are the guidelines for registration and revocation of e-mandate? A customer desirous of opting for e-mandate facility shall undertake a one-time registration process. The mandate shall be registered only after successful validation of additional factor of authenticati...
Post a Comment
Read more

Guidelines to facilitate faster cross-border inward payments

Reserve Bank of India (RBI) has issued guidelines to facilitate faster cross-border inward payments. What is the rationale behind the guidelines? The RBI’s Payments Vision 2025 aims to bring efficiency in the cross-border payments aligning with the G20 roadmap for cross-border payments that has set targets for achieving cheaper, faster, more transparent, and more accessible cross-border payments. One of the challenges with speed of cross-border payments is experienced at the beneficiary leg i.e., the time taken from receipt of the payment at the beneficiary bank till credit to the beneficiary account. What are the guidelines to facilitate faster cross-border inward payments? Banks shall inform their customer of the receipt of cross-border inward transactions immediately on receipt of inward message. Messages received after close of operating hours of banks shall be informed to customer immediately at the start of the next business day. Banks shall undertake reconciliation and confirmat...
Post a Comment
Read more

Guidelines on Money Changing Activities (Updated as on April 02, 2026)

Reserve Bank of India (RBI) has updated the guidelines on money changing activities. Who is Authorised Person? Authorised Person means an authorised dealer, money changer, off-shore banking unit or any other person authorised under section 10(1) of Foreign Exchange Management Act, 1999 (FEMA) to deal in foreign exchange or foreign securities. What are the categories of Authorised Persons? Authorised Dealer (AD) Category-I – entities which are authorised by RBI to carry out all permissible current and capital account transactions. Authorised Dealer (AD) Category-II – entities which are authorised by RBI to carry out specified non-trade related current account transactions, all the activities permitted to Full Fledged Money Changers (FFMC) and any other activity as decided by RBI, and include (i) Upgraded FFMCs; (ii) Select Regional Rural Banks (RRBs); (iii) Select Urban Cooperative Banks (UCBs); and (iv) Other entities. Authorised Dealer (AD) Category-III – entities which are authorised...
Post a Comment
Read more

Continuous Clearing and Settlement on Realisation in Cheque Truncation System (CTS) (Updated as on December 24, 2025)

Reserve Bank of India (RBI) has issued direction on continuous clearing and settlement on realisation in Cheque Truncation System (CTS). What is Cheque Truncation System (CTS)? Cheque Truncation System (CTS) involves halting the physical movement of the cheque and its replacement by images of the instrument and the corresponding data contained in the MICR line.  In CTS, 3 images are taken of each cheque – front Gray Scale, front Black & White and back Black & White. MICR (Magnetic Ink Character Recognition) is a 9-digit code printed at the bottom of cheques using magnetic ink – first 3 digits indicate City Code, middle 3 digits indicate Bank Code and the last 3 digits indicate Bank Branch Code. Only CTS-2010 standards compliant instruments can be presented for clearing through CTS. The presenting banks which truncates the cheques need to preserve the physical instruments for 10 years. From when will the continuous clearing and settlement on realisation in CTS be implemented...
Post a Comment
Read more

FEMA - Borrowing and Lending [including External Commercial Borrowing (ECB) and Trade Credit (TC)]

Reserve Bank of India (RBI) has amended the regulations for borrowing and lending under the Foreign Exchange Management Act, 1999 (FEMA). What are the regulations for External Commercial Borrowing (ECB)? External Commercial Borrowing (ECB) means borrowing by an eligible borrower from a recognised lender. Eligible borrowers – Any person resident in India (other than an individual) that is incorporated, established or registered under a Central or State Act is an eligible borrower, provided such person is permitted for ECB in terms of applicable Acts. An eligible borrower that is under a restructuring scheme or corporate insolvency resolution process may raise ECB only if specifically permitted under the restructuring or resolution plan. An eligible borrower against whom any investigation, adjudication or appeal by a law enforcement agency for contravention of any rule, regulation or direction issued under FEMA is pending, may raise ECB notwithstanding the pending investigation or adjudi...
Post a Comment
Read more