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UPI vs. Internet Banking: What's the Difference?

Edited by Aimie Carlson || By Harlon Moss || Published on February 1, 2024
UPI (Unified Payments Interface) is a mobile-first payment system facilitating instant money transfers, while Internet Banking is a broader online banking system offering various services like fund transfer, bill payment, and account management.

Key Differences

UPI is primarily designed for instant money transfers using a smartphone, enabling transactions through virtual addresses. Internet Banking, on the other hand, offers a wider range of services such as fund transfers, bill payments, loan applications, and account management, accessible via a bank's website.
UPI is accessible through multiple third-party apps and requires just a mobile device for transactions. Internet Banking usually requires logging into a bank's official website, demanding a more secure and stable internet connection.
Transactions through UPI are instantaneous, making it a go-to for quick peer-to-peer transfers. Internet Banking transactions, while online, can sometimes take a bit longer, especially for services like inter-bank transfers or processing of loans.
UPI's interface is designed for quick and easy transactions with minimal steps, ideal for users of all ages. Internet Banking interfaces are more comprehensive, providing detailed account information and a range of services, which might require some navigation.
UPI uses a PIN for each transaction, ensuring security despite the ease of use. Internet Banking employs multiple layers of security, including passwords, OTPs, and sometimes security questions, considering the array of services it offers.

Comparison Chart

Primary Usage

Instant money transfers
Diverse banking services


Mobile devices via various apps
Bank’s website, requires stable internet

Transaction Speed

Varies (instant to a few hours)

User Interface

Simple and user-friendly
Comprehensive and detailed


PIN based
Passwords, OTPs, security questions

UPI and Internet Banking Definitions


UPI enables transactions using a mobile number or virtual payment address.
I sent money to my sister using her UPI ID.

Internet Banking

Internet Banking is an electronic payment system offered by banks for online transactions.
I scheduled my monthly bills through Internet Banking.


UPI facilitates direct bank payments with two-factor authentication.
I securely paid for my online shopping using UPI's two-factor authentication.

Internet Banking

Internet Banking requires secure login credentials for account access.
I changed my Internet Banking password for enhanced security.


UPI is a real-time payment system for instant money transfer.
I used UPI to split the dinner bill with my friends.

Internet Banking

Internet Banking is a comprehensive tool for managing personal finance.
I organized my investments and savings plans using Internet Banking features.


UPI is known for its simplicity and ease of use in digital transactions.
I prefer UPI for utility bill payments due to its simplicity.

Internet Banking

Internet Banking provides facilities like fund transfer, account management, and bill payments.
I checked my account balance and recent transactions using Internet Banking.


UPI is an interoperable system, working across different banking platforms.
With UPI, I can transfer funds from my bank to any other bank instantly.

Internet Banking

Internet Banking is accessible from computers and mobile devices through the bank's website.
I applied for a personal loan through my bank's Internet Banking portal.


Do I need a bank account for UPI?

Yes, a bank account linked to your mobile number is required to use UPI services.

Can I pay bills through Internet Banking?

Yes, Internet Banking allows you to pay bills, transfer funds, manage accounts, and more, all through your bank's online portal.

Are there transaction limits for UPI?

Yes, UPI transactions have limits set by individual banks, usually in line with RBI guidelines.

How does Internet Banking differ from UPI?

Internet Banking is a comprehensive online platform offered by banks for a variety of financial transactions and account management, whereas UPI is specifically designed for quick and easy money transfers using mobile devices.

How do I access Internet Banking?

Access Internet Banking through your bank’s official website or mobile app, using secure login credentials provided by your bank.

Is UPI secure for transactions?

Yes, UPI is secure, utilizing a PIN for each transaction and operating under the regulations of the Reserve Bank of India.

What is UPI?

UPI is a mobile-based instant payment system that allows users to transfer money using a unique identifier like a mobile number or VPA.

Can I access Internet Banking from anywhere?

Yes, as long as you have an internet connection, you can access Internet Banking from anywhere.

How do I reset my Internet Banking password?

You can reset your Internet Banking password through the bank’s website or by contacting customer service.

How do I set up Internet Banking?

You can set up Internet Banking by registering through your bank's website or by visiting a branch.

Can I link multiple bank accounts to UPI?

Yes, you can link multiple bank accounts to a single UPI ID.

Can I schedule payments through Internet Banking?

Yes, Internet Banking allows for scheduling future payments.

What is a UPI PIN?

A UPI PIN is a 4 or 6-digit number set by the user to authorize UPI transactions.

How do I change my UPI ID?

You can change your UPI ID through the UPI app linked to your bank account.

Can I check my account balance using UPI?

Yes, UPI apps allow you to check the linked bank account balance.

Is Internet Banking available 24/7?

Yes, Internet Banking services are generally available round the clock.

Can I open a fixed deposit through Internet Banking?

Yes, most banks offer the option to open fixed deposits through their Internet Banking platforms.

Is there a fee for using UPI?

UPI transactions are usually free, but some banks might impose nominal charges.

What happens if a UPI transaction fails?

In case of a failed UPI transaction, the amount is usually refunded to your account within a few minutes to a few days.

Is it safe to share my Internet Banking details?

No, you should never share your Internet Banking login credentials with anyone.
About Author
Written by
Harlon Moss
Harlon is a seasoned quality moderator and accomplished content writer for Difference Wiki. An alumnus of the prestigious University of California, he earned his degree in Computer Science. Leveraging his academic background, Harlon brings a meticulous and informed perspective to his work, ensuring content accuracy and excellence.
Edited by
Aimie Carlson
Aimie Carlson, holding a master's degree in English literature, is a fervent English language enthusiast. She lends her writing talents to Difference Wiki, a prominent website that specializes in comparisons, offering readers insightful analyses that both captivate and inform.

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