IMPS vs. UPI: Which Fund Transfer Method is Best for You?
Money Matters January 18, 2025
Siddhi Sharma
Money Coach, Lxme } NISM Certified
When it comes to transferring money fast and securely, two options usually come to mind: IMPS (Immediate Payment Service) and UPI (Unified Payments Interface). Both methods are easy to use but knowing the difference between UPI vs IMPS will help you choose the best for yourself.
Why Choosing the Right Fund Transfer Method Matters?
Handling money can be complicated especially when it comes to choosing between different fund transfer methods. Terms like IMPS, UPI, NEFT, and RTGS sound confusing, don’t they? Many women ask themselves, “Which one is the fastest?” or “What if something goes wrong during a transaction?” Understanding the difference between NEFT, RTGS, IMPS, and UPI is key to feeling in control of your finances.
What Happens When You Choose the Wrong Option? Choosing the wrong fund transfer method can lead to these issues:
● Higher Costs: Paying extra charges when a free option might work better.
● Delays: Some methods are slower, causing frustration during urgent transfers.
● Complexity: Entering lengthy bank details can feel inconvenient, especially for quick payments.
These challenges can make you feel unsure and scared about handling your money.
Understanding instant fund transfer methods like IMPS and UPI.
What is IMPS (Immediate Payment Service)?
IMPS is a bank-led system where you can transfer funds instantly, 24/7, including holidays. It’s best for sending money between bank accounts when you know the account details.
Key Features of IMPS:
● Availability: Works 24/7, even on bank holidays.
● Transaction Speed: Funds are transferred instantly.
● Charges: Typically range between Rs. 2.5-20 per transaction, depending on your bank.
● Transaction Limits: Usually Rs. 5 lakhs per day.
● Use Case: Best for transferring money directly between bank accounts, especially when you have the account number and IFSC code.
What is UPI (Unified Payments Interface)?
UPI is a digital payment system where you can transfer money instantly using a mobile app. All you need is the recipient’s UPI ID, mobile number, or even a QR code.
Key Features of UPI:
● Ease of Use: No need to enter account numbers or IFSC codes.
● Cost: Most UPI transactions are free, making it an economical choice.
● Flexibility: Works across various apps like Google Pay, Paytm, PhonePay, etc.
● Transaction Limits: The daily limit is usually Rs. 1 lakh, though this may vary depending on the app or bank.
● Use Case: Ideal for small daily transactions, online shopping, and even investing through platforms like Lxme.
IMPS vs UPI: Key Differences
Here are the main differences between IMPS and UPI:
| Features | IMPS | UPI |
| Speed | Instant | Instant |
| Cost | Charges apply (Rs. 2.5-20 approx.) | Mostly free |
| Ease of use | Requires account details | Works with UPI ID or phonenumber or QR code |
| Best For | Larger, formal transfers | Small, everyday payments |
| Access | Through bank portals or apps | Through mobile apps like Paytm, PhonePay, Google Pay, etc. |
What is better for you: UPI vs IMPS?
● Go for IMPS if: You’re making a larger or formal transfer and have the recipient’s bank details.
● Choose UPI if: You want a free, fast, and user-friendly way to transfer money or invest through Lxme.
How Lxme Simplifies UPI for Women?
Did you know you can use UPI on the Lxme app to start your investment journey? It’s as easy as sending money to a friend! Lxme- an app offering investment for women, also offers guidance that is designed for women’s financial needs, making UPI a super easy tool to grow your wealth.
You can also check out easy-to-invest and withdraw Digital Gulluck on the Lxme app which is nothing but a liquid mutual fund that offers quick investment & quick withdrawal.
Conclusion
Get educated on finances and take control of your money transfers. Whether you choose IMPS or UPI, make informed decisions that suit your goals. And if you are ready to start
investing or learning more about managing your finances, download the Lxme app today! Let’s build a stronger financial future together.
Understanding the difference between NEFT, RTGS, IMPS, and UPI doesn’t have to be difficult. With Lxme by your side, you’re not just learning you’re growing. So, what are you waiting for? Start today and take charge of your financial journey!
FAQs
Can I use IMPS and UPI interchangeably?
Yes, both allow instant transfers, but UPI is more user-friendly for small, frequent transactions, while IMPS is ideal for larger transfers.
Are there transaction limits for IMPS and UPI?
● IMPS: Typically Rs. 5 lakh per day.
● UPI: The daily limit is usually Rs. 1 lakh, though this may vary depending on the app or bank.
Which one is more secure, IMPS or UPI?
Both methods are secure, but UPI offers an extra layer of protection with two-factor authentication and a PIN.
What should I do if an IMPS or UPI transaction fails?
● For IMPS: Contact your bank’s customer care with the transaction reference number.
● For UPI: Check your app for the status. If unresolved, raise a complaint through the app or contact your bank.
Further Read,
Please note, The Lxme Dream Card services has been discontinued from 30th November, 2024 to make way for something very exciting!
Sorry for the inconvenience caused and stay tuned for something really special!
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