On Sept 20, 2022, RBI Governor Shaktikanta Das officially launched the Unified Payment Interface (UPI) Lite service. This is a partially offline payment solution product. Here's what you need to know!
What is UPI Lite?
UPI is a 24*7 instant payment system that allows you to transfer money in real time between two bank accounts. Recently, The Reserve Bank Of India (RBI) launched UPI Lite. It is an on-device wallet feature that will allow users to make real-time small-value payments without using a UPI PIN.
How UPI Lite works
The first step is to add funds to the app wallet from your bank account. Then, you can use those pre loaded funds to pay from the wallet via UPI Lite.
Who can use UPI Lite?
According to an NPCI press release, the BHIM app now supports UPI Lite. At present, customers of eight banks can use UPI Lite via the BHIM app. These banks are
1. SBI
2. Utkarsh Small Finance Bank
3. Union Bank
4. Indian Bank
5. Canara Bank
6. Kotak Mahindra Bank
7. HDFC Bank
8. Punjab National Bank
Transaction limit
A low-value transaction is the goal of UPI Lite. So, the upper limit for UPI Lite transactions is 200. The total limit of UPI Lite balance for an on-device wallet will be 2,000 at any point in time.
UPI Lite without Internet?
In phase one, UPI Lite will process transactions in near offline mode, i.e., debit (payments) can be made without an Internet connection, and credits into the account will be done online.
Need to introduce UPI Lite?
A major purpose of UPI LITE is to prevent low-value transaction entries from cluttering your passbooks, such as the purchase of milk, small groceries, or a snack. In the process of applying for loans, visas, and other services, many users felt that their bank statements were filled with small transactiont resulting in a 20-30 page statement. UPI LITE will finally address this issue.
0 Comments