OBJECTIVES: Use of potentially inappropriate medications (PIM) among the elderly is a serious public health problem because it is intrinsically linked to increased morbidity and mortality, causing the high costs to public health systems. The objective of this study was to compare the prevalence of PIM prescribing in elderly inpatients using the modified American Geriatrics Society (AGS) updated Beers criteria 2012 and same comparing with the Beers criteria 2003. METHODS: The prospective observational study was carried out at a public teaching hospital. Prescriptions of elderly inpatients aged 60 years and above were collected and analyzed. PIMs were identified with the help of Beers criteria 2012 and Beers criteria 2003 and comparison was made between two criteria. RESULTS: The results were based on data of 214 patients. 57% patients were male; and, 61% were aged between 60–69 years with the average age of 68 years. The average number of diagnoses and medications were three and eight, respectively. A total of 44 patients were prescribed with at least 1 PIM according to Beers criteria 2012, compared with 37 patients according to Beers criteria 2003. In 2012 Beers criteria, benzodiazepines were found most prevalent PIMs whereas in 2003 Beers criteria they were found to be low. Theophyline was found to be high prevalent in Beers criteria 2003 than Beers criteria 2012. CONCLUSIONS: Beers criteria 2012 are effective in identifying the PIMs than Beers criteria 2003.