To make low-value Unified Payments Interface (UPI) payments faster and simpler, the Reserve Bank of India (RBI) Governor Shaktikanta Das launched UPI Lite on September 20, 2022. UPI Lite is an on-device wallet feature that will allow users to make real-time small-value payments of up to Rs 200 without using a UPI PIN. At present, only debit from your wallet is permitted and all credits to UPI Lite including refunds will directly go to your bank account.
Here is a closer look at the features of UPI Lite
What is UPI Lite?
Simply put, UPI Lite is an ‘on-device wallet’. Customers will have to add funds from their bank accounts to the wallet on the app to use UPI Lite. As it is an ‘on-device wallet’, the users do not require Internet for a real-time payment.
What is the transaction limit on UPI Lite?
UPI Lite has been designed for small-value transactions. So, the upper limit of a UPI Lite transaction has been set at Rs 200, as per a press release issued by National Payments Corporation of India (NPCI). Users don’t need a UPI PIN for payments below Rs 200 via UPI Lite, as per the NPCI website.
The total limit of UPI Lite balance for an on-device will be Rs 2,000 at any point in time, the press release stated. Users can also perform unlimited transactions in a day using UPI Lite, Union Bank of India stated in a press release issued on September 20, 2022.
Who can use UPI Lite now?
UPI Lite feature has been enabled on the BHIM app, according to a NPCI press release. Currently, eight banks are live with the UPI Lite feature including Canara Bank, HDFC Bank, Indian Bank, Kotak Mahindra Bank, Punjab National Bank, State Bank of India Union Bank of India, and Utkarsh Small Finance Bank, NPCI mentioned.
Can you use UPI Lite without the Internet?
In phase one, UPI Lite will process transactions in near offline mode, i.e., debit (payments) can be made without Internet connection and credits into the account will be done online, NPCI said earlier. However, there is a plan to make UPI Lite offline in the future where customers can process transactions — both debit and credit — in complete offline mode, NPCI added.
UPI Lite: How to add funds?
Do remember that you will be able to add funds on the UPI Lite wallet only in online mode (i.e., Internet connection will be required) with additional factor authentication (AFA) or using UPI AutoPay which has been registered by the user in online mode with AFA, as per NPCI.
In case you disable UPI Lite, the unutilised balance will be credited to your bank account, according to the NPCI website.
Key points to remember while using UPI Lite
UPI Lite transactions, except top-ups, will not be displayed in your bank account statement or passbook. Customers will receive an SMS daily containing the history of UPI Lite transactions carried out during the day, from the bank, as per NPCI.
“Any disputes pertaining to enablement, top up or disablement of UPI Lite shall be referred to and handled by issuing bank,” as per the NPCI website.
How will it benefit the users?
“UPI Lite will provide users with a convenient solution for faster and simpler low-value transactions,” said NPCI. With UPI Lite, the customers do not require to loose cash anymore. This will give an extra edge to customers by offering near to nil transaction failure even at peak hours, Union Bank of India mentioned.