What is the difference between UPI and IMPS?

The main difference between UPI and IMPS lies in the user experience and transfer details. While both offer instant 24/7 transfers, UPI is a mobile-first platform that allows transactions using a Virtual Payment Address (VPA) or QR code without needing bank account details. In contrast, IMPS typically requires the recipient’s account number and IFSC. Key differences include:

• Transaction Limits: IMPS often supports higher limits up to ₹5 lakh, while UPI is generally capped at ₹1 lakh for most peer-to-peer transfers.
• Ease of Use: UPI does not require pre-registering beneficiaries, whereas IMPS usually does.
• Cost: UPI is typically free for individual users, while banks may charge a nominal fee for IMPS.