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The full form of UPI is Unified Payment Interface. UPI is an instant real-time payment system developed by National Payments Corporation of India (NPCI) facilitating inter-bank transactions. The interface is regulated by the Reserve Bank of India (RBI) and works by instantly transferring funds between two bank accounts on a mobile platform. UPI was launched in 2016. It is simple, free of charge and instantaneous.
What is UPI in Banking?
UPI is a single platform that merges various banking services and features under one umbrella. A UPI ID and PIN are sufficient to send and receive money. Real-time bank-to-bank payments can be made using a mobile number or virtual payment address (that reads something like merawalashop@xyzbank). It is simple, free of charge and instantaneous. Unlike NEFT and RTGS, the service is available 24/7 throughout the year including bank holidays.
Diffrence between NEFT, RTGS, IMPS & UPI
| Description | NEFT | RTGS | IMPS | UPI |
|---|---|---|---|---|
| Full-Form | National Electronic Fund Transfer | Real-Time Gross Settlement | Immediate Mobile Payment Service | Unified Payment Interface |
| Regulated by | RBI | RBI | NPCI | NPCI |
| Settlement Type | Half Hourly Batches | Immediate Settlement | Immediate Settlement | Immediate Settlement |
| Minimum Transfer | Rs.1 | Rs.2 lakh | Rs.5 | Rs.1 |
| Maximum Transfer | No Limit | No limit | Rs.2 lakh | Rs. 1 lakh |
| Payment options | Online and Offline | Online and Offline | Online | Online |
| Timings | In Batches- 24/7 | Weekdays: 9:00 AM – 4:30 PM | 24/7, 365 days | 24/7, 365 days |
| Charges | No Charges | Charges differ with bank and amount | Difffers | NO charges |