UPI

1. Unified Payment Interface (UPI) is a popular mobile payment method that allows you to transfer funds from one bank account to other, instantly and free of charge.
2. Transferring money through UPI requires each user to have an ID, termed as UPI ID, which is a unique identification for a bank account that is used to send and receive funds from one bank to another.
3. It allows individuals to request money from some other individual, which is not an option with other payment methods like IMPS, NEFT, etc.
4. These are simplified, hassle-free online payments which facilitate safe and secure mode of money transfers allowing to make payments towards bills, shop on e-commerce websites, etc. for free.
5. According to the numbers released by NPCI, UPI transactions crossed 800 crores for the first time in January this year, with a transaction volume of nearly ₹13 lakh crore which is 56% higher than a year ago.

IMPS

1. Just like other modes of money transfer, IMPS is another method that allows users to transfer files from one bank to another. It stands for Immediate Payment Service, implying that using this method funds can be transferred immediately.
2. It is brought into existence in the year 2010 by NPCI and RBI.
3. IMPS transactions have a daily maximum limit of ₹1 lakh and charges on these transactions made through IMPS vary between ₹5 to ₹15 depending on bank’s conditions. These transactions may also levy an additional service tax.
4. Apart from transferring money from one bank account to another, IMPS can also be used to receive payments, make payments to other merchants, perform mobile banking transactions, etc.
5. It is considered the safest, fast, and reliable method of transferring money.

RTGS

1. For transactions of high amounts which need quick clearing, RTGS is a preferred method of payments. It is a private and safe method of transferring money. It stands for Real Time Gross Settlement (RTGS).
2. Mechanism: Usually, an RTGS payments requires a minimum of ₹2 lakh. The deals are settled instantly because it runs in real time. On working days, RTGS transfers are accessible from 8:00 am to 4:30 PM. The Arabia has a limit on transaction fees, but they are still to be paid.
3. RTGS is a money transfer system that allows the transfers of funds from one bank account to another in real time and on gross settlement basis.
4. The term ‘real time’ implies that transactions through RTGS are processed right when they are initiated by the sender and ‘gross settlement’ means that the instructions regarding the transfer of funds occur on a one-to-one basis.
5. There are no additional charges applicable on transactions made through RTGS. These services can be accessed at 24/7 throughout the year. All the RTGS transactions are backed legally by RBI, hence there is minimal risk of frauds.

NEFT

1. NEFT stands for National Electronic Funds Transfer. It is electronic funds transfer system set up which allows the online transfer of funds from one NEFT-enabled bank account to another.
2. It was started in November 2005 and is managed by Reserve Bank of India.
3. It is a one-to-one payment facility which can be processed only between the banks that offer NEFT-enabled services.
4. Transactions made through NEFT do not take place in real time, implying that it takes a few days for NEFT transactions to complete. There are no limits on the amount of NEFT transactions.
5. There is a fee applicable on all NEFT transactions. The amount varies from ₹2.5 to ₹25 depending on the amount being transferred.