Here’s a closer look at the features of UPI Lite
What is UPI Lite,
Simply put, UPI Lite is an ‘on-device wallet’. To use UPI Lite, customers need to add funds from their bank accounts to the app’s wallet. Since it is an ‘on-device wallet’, users do not need internet for real-time payments.
What is the transaction limit on UPI Lite?
UPI Lite is designed for small value transactions. Hence, as per a press release issued by the National Payments Corporation of India (NPCI), the upper limit for UPI Lite transactions has been set at Rs 200. According to the NPCI website, users do not need a UPI PIN to make payments up to Rs 200 through UPI Lite.
The total limit of UPI light balance for on-device will be Rs 2,000 at any point of time, the press release said. Union Bank said users can also do unlimited transactions in a day using UPI Lite.
Who can use UPI Lite now?
According to the NPCI press release, the UPI Lite feature has been enabled on the BHIM app. Currently, eight banks are live with the UPI Lite feature which includes Canara Bank, HDFC bank, Indian Bank, Kotak Mahindra Bank, Punjab National Bankstate Bank of India Union Bank of Indiaand Utkarsh Small Finance Bank, NPCI mentioned.
Can you use UPI Lite without internet?
NPCI had earlier said that in the first phase, UPI Lite will process transactions in almost offline mode, i.e. debit (payment) can be done without internet connection and credit to the account will be done online. However, there are plans to make UPI Lite offline in future where customers can process transactions – both debit and credit – in full offline mode, NPCI had said earlier.
UPI Lite: How to Add Funds?
Remember that you will be able to add funds on UPI Lite Wallet only in online mode (i.e., internet connection will be required) with Additional Factor Authentication (AFA) or by using UPI Autopay, which has been registered by the user in online mode. AFA as per NPCI.
If you disable UPI Lite, the unused balance will be credited to your bank account, NPCI said.
Key Points to Remember When Using UPI Lite
UPI Lite transactions, except top-ups, will not be reflected in your bank account statement or passbook. Customers will receive an SMS daily with the history of UPI Lite transactions done during the day from the bank, as per NPCI.
According to the NPCI website, “Any dispute relating to enabling, topping up or disabling UPI Lite shall be referred to and handled by the issuing bank.”
What will be the benefit to the users?
NPCI said, “UPI Lite will provide users with a convenient solution for fast and simple low value transactions.” With UPI Lite, customers no longer need to lose cash. It will give an added edge to the customers by offering almost zero transaction failure even in peak hours, Union Bank of India said in a press release dated September 20, 2022.