UPI Lite: What is it and how is it different? Check features, limits and more

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There is no doubt that Unified Payments Interface (UPI) has transformed the digital payment ecosystem. Every user can pay anytime and anywhere by simply entering a phone number or scanning a QR code. With the growing popularity of UPI, NPCI rolled out new features and services to ensure that the service remains seamless. One of the key additions to the cashless payment service was recently introduced by RBI as UPI Lite. It not only helps to streamline day-to-day small value transactions, but also helps to make payments without active internet connection.

What is UPI Lite?

UPI Lite is an online wallet developed by National Payments Corporation of India (NPCI) for making small value payments without UPI PIN. It is available within selective UPI apps like BHIM, Google Pay and Paytm. Just like UPI, users can make transactions using UPI QR codes or transfer money through VPA's, mobile numbers, bank accounts and UPI ID.

UPI Lite offers a hassle free and reliable payment alternative for users who pay small amounts frequently on a daily basis. It's simple process of making payments makes it easy and efficient to pay for your groceries, cab rides or snacks at a food joint.

How is UPI Lite different from UPI?

While UPI is an advanced digital payment system which allows users to make transactions of up to ?1 lakh per day, UPI Lite is a simpler version designed for making small value payments with each transaction worth ?500 and transaction limit of ?4,000 per day. It is based on an e-wallet system that has the capacity to hold ?2,000 as balance at a time. While UPI requires users to enter a PIN every time while transferring money, it is not required in the case of UPI Lite.

What are the benefits of using UPI Lite?

UPI Lite allows users to keep a record of their transactions within the UPI app. As these transactions are not displayed in the bank passbook,it makes it easier for users to track their small value transactions on a daily basis. Moreover, the latest version of UPI Lite called UPI Lite X allows users to transact money without internet connectivity. However, it has a limit of 10 credit transactions and 1 debit transaction per day.

How to make a UPI Lite account?

Step 1: A new user can download a UPI app like Google Pay or Paytm and link the bank account for starting the UPI Lite feature.

Step 2: Select the activate UPI Lite option on the UPI app. Agree to all terms and conditions.

Step 3: Fill in the amount [max up to 2,000] you want to add in the UPI Lite wallet.

Step 4: Lastly, enter your MPIN to process money transfer to UPI Lite wallet.

Once the sum is added, users can make payments with every transaction worth ?500 without entering UPI PIN. The transactions can take place by using QR codes or the mobile number of the receiver.

The users can follow the aforementioned steps for topping up the UPI Lite balance.

UPI Lite promises a fast and secure mode of making payments. It upholds the quality benchmarks of UPI and ensures a hassle free and seamless experience for users.