Digital Payments | RTGS | NEFT Summary

IMPS (Immediate Payment Service)

 Full Form: Immediate Payment Service

 MMID (Mobile Money Identifier):

o Full Form: Mobile Money Identifier
o Total Digits: 7
o First 4 Digits: Represent the Bank Code
o Next 3 Digits: Represent the Customer’s Unique Code
 MPIN (Mobile Personal Identification Number): 4 or 6 digits
 IMPS Transaction Limits:
o Per Day Limit: ₹5 lakh (varies by bank)
 Charges: IMPS transactions are chargeable, unlike UPI, which is
generally free. (Charges depend on the bank’s policy.)

UPI (Unified Payments Interface)

 Full Form: Unified Payments Interface

 2FA (Two-Factor Authentication):

1. UPI PIN (Personal Identification Number)
2. Device Binding (Mobile + SIM verification)
 Transaction Limits:
o Per Transaction: ₹1 lakh (₹5 lakh for specific categories like
education, hospitals, credit cards, etc.)

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 o Per Day Limit: ₹1 lakh (varies by bank)
 Charges: Generally free, but PPI (wallet-based) UPI transactions
above ₹2,000 may have merchant charges.
 7 Key Parties Involved in UPI Transactions:
1. Payer (Customer sending money)
2. Payee (Receiver of money)
3. PSP (Payment Service Provider) Bank (App provider like
Google Pay, PhonePe)
4. Remitter Bank (Payer’s bank)
5. Beneficiary Bank (Payee’s bank)
6. NPCI (National Payments Corporation of India) (Switch
operator)
7. Banking Partner (For UPI apps using third-party bank
services)
 Minor UPI:
o Allowed only for age 10-18 years
o Linked to guardian’s account
o Only receive money, not send (in most banks)
 Countries Where UPI is Available:
o Singapore (via PayNow)
o UAE
o France
o Sri Lanka

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 o Nepal
o Bhutan
o Mauritius
o Oman
o UK (Planned)
o USA (Limited acceptance)

UPI Lite
 Purpose: For small-value, faster transactions without using a UPI
PIN.
 Transaction Limits:
 Per Transaction Limit: Up to ₹1000 (Earlier, ₹500)
 Cumulative Daily Usage Limit: ₹10,000
 Maximum Balance in UPI LITE Wallet (At Any Time): ₹5,000
(Earlier, ₹2000)

Key Features:
o No Charges on transactions

o No UPI PIN Required

o Works Offline for debit transactions (credit requires
internet)
o Linked to Bank Account, not a separate wallet

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 UPI 123PAY
 Purpose: UPI for feature phones (without the internet).
 Modes of Transaction:
1. IVR (Interactive Voice Response) Calling
2. Missed Call-Based Payments
3. Sound-Based Payments
4. App-Based Functionality (for feature phones)
 IVR Numbers:
o 080 4516 3666
o 080 4516 3581
o 6366 200 200
 PIN Requirement: UPI PIN is required for authentication.
 Supported Regional Languages: Available in 12+ Indian
languages, including Hindi, Tamil, Telugu, Bengali, Marathi,
Kannada, Gujarati, etc.

UPI Circle
 Purpose: A user-friendly way to send money to a group of people
in one go.
 Key Features:
o Users can create a group (circle) of contacts.
o Money can be sent or split among multiple members.

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 o Useful for shared expenses, like rent, trips, or group
payments.
o Available in popular UPI apps like PhonePe, Google Pay,
Paytm, etc.
 Functionality:
1. Create a UPI Circle with selected contacts.
2. Send or request money from the group.
3. Track contributions within the circle.
 Security: Transactions still require UPI PIN authentication for
safety.

NEFT & RTGS – Key Details

NEFT (National Electronic Funds Transfer)
 Transaction Charges:

o Online (via net banking or UPI): Free

o Offline (via bank branch):
 Up to ₹10,000 – ₹2.50 + GST
 ₹10,001 to ₹1 lakh – ₹5 + GST
 ₹1 lakh to ₹2 lakh – ₹15 + GST
 Above ₹2 lakh – ₹25 + GST
 Refund & Compensation (if failed):
o If transaction fails and money is not credited back in time,
banks must pay compensation at Repo Rate + 2%.

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  Refund Turnaround Time (TAT):
o Failed Transactions: Refund within 2 working hours after
batch settlement.
 UTR Number: 12 digits

RTGS (Real-Time Gross Settlement)

 Transaction Charges (Only for branch-based transactions; online

RTGS is free):
o ₹2 lakh – ₹5 lakh: ₹25 + GST
o Above ₹5 lakh: ₹50 + GST
 Refund & Compensation (if failed):
o Compensation at Repo Rate + 2% if the amount is not
credited and not refunded in time.
 Refund Turnaround Time (TAT):
o Failed Transactions: Refund within 1 hour of failure or
before the end of the next working day, whichever is
earlier.
 UTR Number: 22 digits
 Regulated & Managed by: RBI (Reserve Bank of India)
Official RBI Guidelines:
1. NEFT Online Charges: Free (if done via internet banking, mobile
banking, or UPI).
2. RTGS Online Charges: Free (for transactions done via internet
banking or mobile banking).

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 3. Branch Transactions: Banks can levy charges for NEFT & RTGS if
done at a branch.

NPCI – Umbrella Organization

The National Payments Corporation of India (NPCI) is an umbrella
organization for operating retail payment and settlement systems in
India. It was established in 2008 under the guidance of RBI and IBA
(Indian Banks' Association) to promote digital payments.
Key Payment Systems Managed by NPCI:
 UPI (Unified Payments Interface)

 IMPS (Immediate Payment Service)

 RuPay (Domestic Card Network)
 AEPS (Aadhaar Enabled Payment System)
 BBPS (Bharat Bill Payment System)
 NACH (National Automated Clearing House)
 NETC (FASTag - National Electronic Toll Collection)
 e-RUPI (Digital Voucher System)

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Comparison of NPCI & RBI – Roles & Responsibilities
Feature/Function NPCI (National RBI (Reserve Bank
Payments of India)
Corporation of India)
Role Develops & operates Regulates &
retail payment supervises the
systems financial system
Manages/Operates RuPay, IMPS, UPI, NEFT, RTGS,
AEPS, BBPS, NETC Monetary Policy,
(FASTag), NACH, e- Banking
RUPI Regulation
UPI (Unified Payments Developed & Regulated by RBI
Interface) operated by NPCI
IMPS (Immediate Developed & Regulated by RBI
Payment Service) managed by NPCI
NEFT (National Electronic ❌ (Not managed by Managed &
Funds Transfer) NPCI) regulated by RBI
RTGS (Real-Time Gross ❌ (Not managed by Managed &
Settlement) NPCI) regulated by RBI
RuPay Card Owned & operated ❌ (Not managed
by NPCI by RBI)
AEPS (Aadhaar Enabled Developed & Regulated by RBI
Payment System) managed by NPCI
BBPS (Bharat Bill Managed by NPCI Regulated by RBI
Payment System)

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NACH (National Managed by NPCI Regulated by RBI
Automated Clearing
House)
FASTag (NETC - National Managed by NPCI Regulated by RBI
Electronic Toll Collection)
e-RUPI (Prepaid digital Managed by NPCI Regulated by RBI
voucher)

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