UPI (Unified Payment Interface) and IMPS (Immediate Payment Service) are both real-time payment systems developed by the National Payments Corporation of India (NPCI). Here are some of the key differences between UPI and IMPS:
- Transaction Limits: IMPS has higher transaction limits compared to UPI. While UPI allows a maximum transaction limit of Rs. 1 lakh per transaction, IMPS allows transactions up to Rs. 2 lakhs per transaction.
- Payment Modes: UPI allows payments using a virtual payment address (VPA) or a mobile number, while IMPS requires users to enter the recipient’s bank account number and IFSC code to initiate a transaction.
- Transaction Charges: Both UPI and IMPS do not charge any transaction fees for fund transfers. However, some banks may charge a nominal fee for using IMPS.
- Use Cases: UPI is mainly used for person-to-person (P2P) payments and merchant payments, while IMPS is primarily used for high-value transactions such as salary payments and loan repayments.
- Transaction Speed: Both UPI and IMPS offer real-time transaction processing. However, UPI transactions are typically faster than IMPS transactions as they require fewer authentication steps.
Overall, UPI and IMPS are both reliable and secure payment systems that offer real-time fund transfers. While UPI is more user-friendly and is gaining popularity for its ease of use, IMPS is still widely used for high-value transactions and is supported by most banks in India.