Difference Between IMPS and UPI
IMPS is an abbreviation for 'Immediate Payment Service'. It is an instant interbank electronic fund transfer service that helps you access your bank account and transfer funds immediately and securely.
UPI (Unified Payments Interface) is a payment system launched by National Payments Corporation of India. Using UPI, customer can pay directly from a bank account to different merchants, both online and offline, without the hassle of typing credit card details, IFSC code, or net banking/wallet passwords.
There are many differences between IMPS and UPI as listed in the following table which would help you choosing between the two:
IMPS Vs UPI
| Basis of Difference | IMPS (Immediate Payment Service) | UPI (Unified Payment Interface) | |
|---|---|---|---|
| Definition | The system of an instant real-time inter-bank electronic funds transfer in India | Vs | The system of instant fund transfer between two bank accounts on the mobile platform |
| Fund Transfer Limit (Rs.) | 2 Lakh per day | Vs | 1 Lakh per day |
| Required Device | Internet, Website & Application | Vs | Internet & Smartphone |
| Information Required | Account Number & IFS Code/ MMID | Vs | VPA of recipient & MPIN |
| Fund Transfer Time | Instant | Vs | Instant |
| Fund Transfer to abroad | Yes | Vs | No |
| Beneficiary Registration Required | Yes/ No, if using Mobile Number & MMID | Vs | No |
| 24 X 7 Money Transfer | No | Vs | Yes |
| Cost of Fund Transfer | Rs. 5 to Rs. 15 plus taxes | Vs | Free |
| Alert sent after money collection | No | Vs | Yes |
| Payment gateway involvement | Yes | Vs | No |
| Banks offering payment method | Almost all banks in India | Vs | 21 Banks |
| E-Commerce transactions | Yes, possible | Vs | Not possible |