UPI VS IMPS:  Both UPI (Unified Payments Interface) and IMPS (Immediate Payment Service) are popular methods of digital payments that are widely used in India. But, there are some important differences between them. Let us tell you about them. 

Use UPI or IMPS to transfer money? Which one is more beneficial, many people make mistakes

Both UPI (Unified Payments Interface) and IMPS (Immediate Payment Service) are popular methods of digital payments that are widely used in India. Both of them provide a secure way to send and receive money. But, there are some important differences between them. Let us tell you about them. 

UPI

What is UPI - UPI is an instant payment system developed by the National Payments Corporation of India (NPCI).

How it works - For UPI you only need a Virtual Payment Address (VPA), which you link to your bank account. After this, you can transfer money instantly to any other UPI user by entering their VPA or mobile number.

Features - UPI allows you to transfer and receive money 24x7, 365 days. It is available through many online payment apps on smartphones, such as Google Pay, PhonePe, Paytm etc.

Benefits - Transactions are very easy and fast through UPI. It is considered very safe and reliable. Works with many banks and payment apps. Also, UPI payments have low or no charges. 

IMPS

What is IMPS - IMPS is an old payment system which is also developed by National Payments Corporation of India (NPCI).

How it works - For IMPS, you have to enter your bank account details, IFSC code and beneficiary account details.

Features - Through IMPS, you can transfer money 24x7, 365 days. It is available through net banking, mobile banking and ATM.

Benefits - Many people use it to transfer money. It is mostly used to transfer large amounts. It is considered quite safe and reliable. 

Limitations - It is not as easy as UPI. It takes more time to complete a transaction than UPI. Transferring money with its help may incur higher charges. 

Which is better?

Depending on your needs, either UPI or IMPS may be better. If you want fast, easy and fee-free transactions, then UPI may be a better option for you. However, if you do not have a smartphone, you can use IMPS.