UPI Lite: A payment method that allows you to pay without PIN or internet

The upper limit for payments has been set at Rs 200; wallet balance cannot exceed Rs 2,000 at any point

Reserve Bank of India Governor Shaktikanta Das launched Unified Payments Interface (UPI) Lite on September 20, in a bid to make low-value UPI payments faster.

What is UPI Lite?

It is an on-device wallet feature that will allow users to make small-value payments of up to Rs 200 in real time, without using a UPI PIN. Users will have to add funds from their bank accounts to the UPI Lite wallet. For a real-time payment, users will not need the internet as it is an on-device wallet. At present, only debit from wallet is permitted and all credits to UPI Lite including refunds, will go directly to your bank account.

Transaction limit for UPI Lite

According to a press release issued by National Payments Corporation of India (NPCI), the upper limit for payments has been set at Rs 200. Users will not need a UPI PIN to make payments below Rs 200, according to the NPCI website. The total limit of UPI Lite balance for an on-device wallet will be Rs 2,000 at any point in time, stated the press release.

Union Bank of India also issued a press release on the launch day of UPI Lite and stated that the users can perform unlimited transactions during a day.

Can you use UPI Lite without the internet?

In phase-1 of its rollout, UPI Lite will process transactions in near offline mode. This means that the debit payments can be done without the internet connectivity, however, credit payments will be done into the account with the help of the internet. However, UPI Lite is expected to become offline in the future, where both debit and credit payments can be processed in complete offline mode.

How will it benefit the users?

The new interface will provide users with a convenient solution for simpler and faster low-value transactions. The customers will not be required to lose cash anymore. It will also give an extra edge to customers by offering nil transaction failure, even at peak hours.

How to add funds?

The funds will only be added only in online mode and users will need internet connectivity with additional factor authentication, AFA or by using UPI AutoPay, which has been registered by the user in online mode with AFA