UPI NEFT RTGS IMPS

In modern Indian Banking, UPI, NEFT, RTGS, and IMPS  are the most preferred modes of payment to transfer money between two bank accounts. These methods of payment facilitate easy ways of transferring money between two bank accounts. In this blog, we will try to understand the merits and demerits of these modes of payment.

UPI:- Unified Payment Interface.

It is a revolutionary technology framework used for mobile payments in India. It was launched in 2016 by National Payment Corporation of India (NPCI). It is the banking technology infrastructure on which all banks, financial institutions, and users transact money. It consists of software and a set of guidelines and protocols maintained by the NPCI. 

UPI ID

Over this network, banks and Fintech companies have created User Interface Apps that we use today. The most popular UPI apps include PhonePe, Google Pay, Paytm, and many more. The user creates a UPI ID on these apps. Every UPI ID is linked to the user’s mobile number and bank account. A UPI ID (Unified Payments Interface ID) is a unique identifier that allows user to send and receive money directly from their bank accounts  through UPI apps

For performing transactions, the User looks for another user having a UPI ID or mobile number. Once the user enters the details, the transaction takes place. Money travels from the Sender’s bank account to the Mobile App’s Current account and then finally to the receiver’s bank account.

UPI Transaction Limits 

UPI (Unified Payments Interface) payment limits in India are primarily set by the National Payments Corporation of India (NPCI), but individual banks can impose their own, sometimes stricter, limits.

• As per NPCI, for UPI payment, the daily transaction limit is Rs. 1 Lac for  P2P ( Person to Person) Transactions.

• P2M  ( Person-to-Merchant) Transactions: Can go up to ₹5 lakh for specific high-value use cases (tax, healthcare, education, financial investments)

This mode of payment was started in November 2005 by the RBI. NEFT can be done in Online and Offline methods. For offline NEFT, the Customer has to visit the nearest bank. Online NEFT can be done through net banking on a Laptop or mobile. In NEFT settlement of money occurs every 30 minutes between different banks. This is 24 x 7 service provided by Indian banks. A total of 48 times, money gets settled between the banks. So, NEFT is a delayed or deferred method of payment. Here, money is transferred in batches. In NEFT, the customer gets credit in his bank ac in Approx 2 Hrs.

RTGS:- Real Time Gross Settlement.

It is also one of the popular modes of payment transfer. In RTGS, money gets instantly transferred between Bank accounts. RTGS can be done both offline and online. But the minimum limit for RTGS payment is 2 Lakhs. There is no maximum limit for money transfers. This is also a 24/7 service provided by Indian Banks. The customer gets credit instantly. RTGS was started by the RBI on 26^th March 2004. Previously, It was used for transferring money from one bank to another. Since April 2004, this method has been used by Normal customers.

IMPS:- Immediate Payment Transfer System.

 IMPS is the product of the National Payment Corporation of India (NPCI). In IMPS, money is instantly transferred between accounts. The customer gets credit in his account immediately. There is no minimum limit for money transfer, but the maximum you can transfer is upto 5 lakhs. It is available only in online mode. The IMPS facility is available 24/7 to customers.

Comparison  chart: NEFT RTGS IMPS UPI

NEFT	RTGS	IMPS	UPI
Regulated  by RBI	Regulated  by RBI	Regulated by NPCI	Regulated by NPCI
Online and Offline	Online and Offline	Only Online	Only Online
24 by 7	24 by 7	24 by 7	24 by 7
It will take 2 hours to credit the money	Payment transferred immediately	Payment transferred immediately	Payment transferred immediately
No Minimum limit and 25 Lakhs Max Limit.	Minimum limit 2 lakhs. Maximum no limit.	No minimum limit. Maximum Limit is 5 Lakhs.	No minimum limit. Maximum Limit is 1 Lakhs.

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