IMPS and UPI transaction charges, What in IMPS?, What is UPI?
IMPS is an innovative real time payment service that is available round the clock. Inter-bank Mobile Payment Service is a new facility added to Mobile Banking Service. It facilitates funds transfer to an account of the beneficiary with a participating bank, based on beneficiary’s Mobile Number and MMID.
National Payments Corporation of India (NPCI) offers banks and RBI approved non-banking partners (PPIs), a new payment service called “Immediate Payment Service (IMPS)”. The IMPSPG, 2017 is framed under the provisions of Payment and Settlement System Act 2007 and are binding on all members of IMPS. The IMPS-PG is already implemented.
IMPS offer an instant,24*7 interbank electronic fund transfer service capable of processing person to person, person to account and person to merchant remittances via mobile, internet and atms. It is a multichannel and multidimensional platform that make the payments possible within fraction of seconds with all the standards and integrity maintained for security required for even high worth transactions.
IMPS Fund transfer/Remittance options:
- Using Mobile number & MMID (P2P)
- Using Account number & IFS Code (P2A)
- Using Aadhaar number (ABRS)
- Using Mobile number & MMID (P2P)
- Customer Initiated – P2M(Push)
- Merchant Initiated – P2M(Pull)
What is UPI?
Unified Payments Interface (“UPI”) The launch of the Unified Payments Interface (“UPI”) by National Payments Corporation of India (“NPCI”), has provided an impetus to India’s move to incentivize digital payments with the vision to transform India into a digitally empowered economy and reduce dependence on cash transactions. NPCI is the umbrella body for all payment systems in India, which makes digital transactions as effortless as sending a text message.
UPI makes cutting-edge changes by supporting real time transfer of money between accounts across banks using smartphones by use of just one single interface besides creating interoperability and superior customer experience. Embracing the smartphone boom in India and the inclination of customers to move to digital mobile-based solutions, UPI addresses the challenges and limitations of the existing payment systems, wherein customers are required to disclose sensitive financial details like bank account details, IFSC code, credit/debit card details and sensitive PIN numbers while initiating transactions and juggle between different mobile banking applications with their different user IDs and passwords.
Unified Payments Interface (UPI) is an instant payment system developed by the National Payments Corporation of India (NPCI), an RBI regulated entity. UPI is built over the IMPS infrastructure and allows you to instantly transfer money between any two parties’ bank accounts.
How UPI / BHIM at POS works?
- This innovative dynamic QR-code based solution uses the store’s existing credit/debit card POS terminal to enable UPI-based cashless payments.
- When a customer requests UPI Payment mode, the cashier simply needs to select the ‘UPI Payment’ option on his existing card POS terminal and inputs the relevant bill payment amount.
- This triggers the generation of a dynamic QR-code on the POS terminal screen itself which can be scanned into any mobile-based UPI-apps like BHIM used by the customer.
- When scanned, the QR code automatically transfers relevant transaction details and displays it on the customer’s payment app for authorizing payment transfer.
- Once the payment transfer from customer’s UPI-linked bank account to store’s UPI-linked account is completed, the payment solution triggers a settlement confirmation to the initiating instore POS terminal for printing out a transaction completion charge slip.
Transaction charges for IMPS
- 1) Above Rs.1 to Rs 1 Lakh – Rs.5 + GST
- 2) Above 1 lakh to 2 Lakh – Rs.15 + GST