Initially transfer of money was made possible through NEFT and RTGS, which involves significant delay as it normally consumes few hours to complete the transaction process. These process also involves certain limitations as restricted period of transaction in the specified business hours.
After facing various drawbacks from NEFT and RTGS, NPCI (National Payment Corporation of India) introduced another mode of transfer of funds knows as IMPS. It basically involves a transfer mechanism using the mobile phone through which one can transfer money anytime, anywhere across India. IMPS uses mobile number or Aadhaar number to connect with a bank account. All u need is mobile number and IFSC code or MMID of the Beneficiary. Money will be credited in Beneficiary’s account within a few seconds and IMPS is available 24X7 and on holidays too.
Although IMPS was more beneficial than other modes of transfer, yet it faced few drawbacks, like you need to know beneficiary’s bank account number, and IFSC code depending on the bank app you’re using, also their bank branch, which are all long strings of numbers. It’s confusing and painstaking. To overcome this NPCI (National Payment Corporation of India) recently launched new fund transfer and online transaction system named UPI (Unified Payment Interface) which is introduced in order to facilitate faster and more reliable transaction. UPI is successor of IMPS. With UPI all you need is an alias means an ID which looks very similar to Email address for example xyz@icici. You have to choose your own unique UPI ID Code. With UPI you do not have to worry about giving Account Name, Bank Account Number, Branch or IFSC Code to the sender. You can Send or Receive Money from one Bank to other instantly. Just like IMPS You can send or receive money anytime you want.
To use UPI all you have to do is download one of the 21 UPI apps from the Google Play store that supports the UPI. The list of banks include Andhra Bank, Axis Bank, Bank of Maharashtra, Canara Bank, DCB Bank, Federal Bank, ICICI Bank and many more.