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IMPS & UPI

Banking / Economy Awareness · Payments & Financial Infrastructure

Useful for: IBPS Banking

Overview

IMPS and UPI are NPCI’s instant payment systems; UPI links bank accounts to a virtual payment address on a mobile app.

Key points

IMPS was launched by NPCI in 2010; it is instant and available 24×7.
UPI was launched by NPCI in 2016.
UPI uses a Virtual Payment Address (VPA) such as name@bank, or QR codes.
BHIM is NPCI’s own UPI app.
UPI 123PAY enables UPI payments from feature phones; UPI Lite handles small-value payments.

Explanation

UPI needs a UPI PIN for debits; never share it.
Collect requests must be checked — approving one sends money out.
UPI works across banks through a single interoperable platform.
Transaction limits are set by NPCI and banks and may change.

Step by step

Identify the institution, rule or instrument asked.
Recall its definition, year, limit or function from a table.
Eliminate options from similar institutions or older rules.

Examples

UPI is operated by → NPCI.
UPI payments from feature phones → UPI 123PAY.
IMPS was launched in → 2010.

Traps and advanced points

Trap: Saying RBI operates UPI.
Trap: Approving unknown collect requests.
Trap: Thinking UPI needs the beneficiary’s IFSC.

Quick revision

NPCI: IMPS 2010, UPI 2016.
VPA, QR, UPI PIN.
123PAY feature phones.

Practice MCQs

Which term-description pair is correctly matched for the concept “IFSC”?
1. IFSC — access to useful and affordable formal financial services
2. credit risk — Indian Financial System Code
3. IFSC — Indian Financial System Code
4. demand deposit — Indian Financial System Code
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Answer: (c) IFSC — Indian Financial System Code. Code identifying bank branches for electronic payment routing.
Which term-description pair is correctly matched for the concept “RTGS”?
1. RTGS — deposit withdrawable on demand subject to account terms
2. operational risk — Real Time Gross Settlement
3. RTGS — Real Time Gross Settlement
4. RTGS — risk of loss from failed processes, people, systems or external events
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Answer: (c) RTGS — Real Time Gross Settlement. Transactions are settled individually in real time on a gross basis.
IMPS was launched by NPCI in —
1. 2010
2. 2016
3. 2019
4. 2008
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Answer: (a) 2010. 2010.
UPI was launched by NPCI in —
1. 2014
2. 2016
3. 2018
4. 2010
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Answer: (b) 2016. 2016.
UPI 123PAY enables UPI payments from —
1. cheques
2. feature phones
3. only laptops
4. ATMs only
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Answer: (b) feature phones. Feature phones.
UPI Lite handles —
1. small-value payments
2. large corporate transfers
3. loans
4. foreign exchange
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Answer: (a) small-value payments. Small payments.
IMPS is available —
1. only on working days
2. only at night
3. monthly
4. 24×7
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Answer: (d) 24×7. Instant 24×7.
UPI is operated by —
1. SEBI
2. IRDAI
3. RBI
4. NPCI
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Answer: (d) NPCI. NPCI.
Scanning a QR code to pay a shopkeeper usually uses —
1. demand draft
2. UPI
3. RTGS
4. cheque
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Answer: (b) UPI. UPI QR.
IMPS stands for —
1. Immediate Payment Service
2. Indian Money Payment System
3. Instant Mobile Pay Scheme
4. Internet Money Processing Service
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Answer: (a) Immediate Payment Service. IMPS.