IMPS has not only changed consumer behaviour and expectations but has also paved the way for newer forms of instant payment systems to operate in India.
UPI is a payment system that allows you to transfer money between any two parties. As compared to NEFT, RTGS and IMPS, UPI is far more well-defined and standardized across banks.
Consumers can use RTGS to transfer funds through two ways – online internet banking and offline by visiting a bank branch.
Both RTGS and NEFT have their strengths. Let’s understand these strengths and decide which mode to use and most importantly, when.
The UPI ID or VPA is what you share with your customers or family when they need to make payments to you.
RTGS is a convenient transaction mode that is ideal for high-value transactions. Individuals can use this form of payment for large investments & payments.
Consumers can use IMPS without needing a smartphone, which adds to its financial inclusivity, making it a great payment option for the masses.
The characteristics of NEFT can help customers in spite of the dawn of faster payment solutions like IMPS in India.
One of the most important IMPS features is that it offers real-time transfers of funds that occur on an electronic platform.
NEFT allows people to transfer funds electronically from one bank account to another and is relevant to those who wish to transfer large sums of money.