Introducing UPI Lite: A Simplified Version of UPI for Easy Transactions
The introduction of UPI Lite by RBI is a significant addition to the digital payment landscape, ensuring seamless transactions for users even without an active internet connection. This new feature, part of the growing popularity of UPI, allows users to make small value transactions easily by simply entering a phone number or scanning a QR code. NPCI has been proactive in rolling out new features and services to enhance the UPI experience and maintain its efficiency.
What is UPI Lite?
UPI Lite is an online wallet developed by the National Payments Corporation of India (NPCI) for making small payments without a UPI PIN. It is available on select UPI apps like BHIM, Google Pay and Paytm. Like UPI, users can transact using UPI QR codes or transfer money through VPA, mobile numbers, bank accounts and UPI ID.
UPI Lite offers a hassle-free and reliable payment option for users who pay small amounts frequently on a daily basis. Thanks to the simple payment process, it is easy and efficient to pay for groceries, taxi rides or snacks at a restaurant.
Read more: Google Pay UPI LITE is here; Check your payment benefits
How is UPI Lite different from UPI?
While UPI is an advanced digital payment system that allows users to make transactions of up to ₹100 per day, UPI Lite is a simpler version designed for making small payments with each transaction worth ₹500 and a transaction limit of ₹4,000 per day. It is based on an e-wallet system that can hold a balance of ₹2,000 at a time. While UPI requires users to enter a PIN every time during a money transfer, it is not required in the case of UPI Lite.
What are the benefits of using UPI Lite?
UPI Lite allows users to keep track of their transactions in the UPI app. Since these transactions are not shown in the passbook, it is easier for users to keep track of their small values on a daily basis. Additionally, the latest version of UPI Lite, called UPI Lite X, allows users to process money without an internet connection. However, it is limited to 10 credit transactions and 1 debit transaction per day.
Read more: India’s International Travelers Now Easily Access UPI, NPCI Launches New Service: Check Details
How to make a UPI Lite account?
Step 1: A new user can download a UPI app like Google Pay or Paytm and link a bank account to activate the UPI Lite feature.
Step 2: In the UPI app, select the UPI Lite option. Accept all terms.
Step 3: Enter the amount [up to 2000] you want to add to the UPI Lite wallet.
Step 4: Finally, enter your MPIN to process the money transfer to the UPI Lite wallet.
Read more: Get cash from ATMs using UPI apps: Step-by-step guide and how UPI ATM works
Once the amount is added, users can make payments for every transaction worth ₹500 without entering the UPI PIN. Transactions can be made using QR codes or the recipient’s mobile phone number.
Users can follow the above instructions to top up their UPI Lite balance.
UPI Lite promises a fast and secure payment method. It maintains UPI’s quality criteria and ensures a hassle-free and seamless user experience for users.
