What is UPI?
Unified Payments Interface or UPI has become a household word in India over the years. Developed by the National Payments Corporation of India (NPCI), UPI is a 24*7 instant payment system that allows you to transfer money between two bank accounts in real time. UPI is built on Immediate Payment Service or IMPS infrastructure, says NPCI’s website.
All you need is a smartphone, an internet connection, an app and a virtual ID to send money through UPI. Through UPI, you can transfer money using a combo of Virtual ID or bank account number and IFSC code or Aadhaar number, or by scanning a Quick Response (QR) code. Note that UPI allows you to use multiple bank accounts in a single mobile application.
How to use UPI?
To use UPI, you must have a bank account with a member bank, ie your bank allows you to use the UPI facility. NPCI has added over 100 public and private sector banks, co-operative banks, small finance banks and rural banks as members over the years. you can check the list Here,
Then, you need to download any app on your smartphone that supports UPI. Some of the commonly used apps that offer UPI options are BHIM, Paytm, PhonePe, Google Pay, Amazon Pay etc. Your mobile number should be registered with your bank account for verification.
Read also: Difference Between UPI123 and UPI Lite
UPI PIN mandatory for UPI transactions
When registering for UPI for the first time, you will need to create a 4 to 6 digit Personal Identification Number (PIN) with the app. You need to enter this UPI PIN to authorize all bank transactions. Simple interface, single-click authentication and quick money transfer have made UPI popular among users.
What is the transaction limit of UPI?
According to the NPCI website, currently the upper limit per UPI transaction is Rs 2 lakh. In addition, UPI apps also allow you to request payment from another user.
Can you receive money through UPI?
Yes, you can receive money through UPI. In case of Virtual ID transactions, the beneficiary should have a Virtual ID and, in turn, should be registered with UPI. NPCI states that in case of IFSC or Aadhaar number with a bank account, the beneficiary need not be registered for UPI.
How to Check UPI Transaction History?
You can easily check your UPI transaction history on the mobile application. To view the transaction history, go to the ‘Home Screen’ and click on ‘Transaction History’, says the NPCI website.
What is UPI Lite?
The Reserve Bank of India (RBI) launched UPI Lite last week. It is an ‘on-device wallet’ feature that will allow users to make small denomination payments in real time without using UPI PIN.
How UPI Lite works
First, you need to add or load money from your bank account into the app’s wallet. Then, you can use those pre-loaded funds to make payments through UPI Lite from the wallet.
Who can use UPI Lite?
According to the NPCI press release, the UPI Lite feature has been enabled on the BHIM app. At present, customers of eight banks can use UPI Lite through the BHIM app. These banks are 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 noted.
What is the transaction limit for UPI Lite?
Note that UPI Lite is designed for low value transactions. So, the upper limit for UPI Lite transactions is Rs 200. According to the NPCI website, users do not need a UPI PIN for payments below Rs 200 through UPI Lite.
The total limit for UPI Lite balance for on-device wallet will be Rs 2,000 at any point of time.
Can you use UPI Lite without internet?
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, NPCI said earlier.
Is credit option available on UPI Lite?
As per NPCI, at present, only debits from your wallet are allowed and all credits of UPI Lite including refunds will go directly to your bank account.
How to Check UPI Lite Transaction History?
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.
Difference Between UPI and UPI Lite
| is i | UPI Lite | |
| What is this? | UPI is a 24*7 instant payment system that allows you to transfer money between two bank accounts in real time. | UPI Lite is an ‘on-device wallet’ feature that will allow users to make small value payments in real time. |
| transaction limit | The upper limit per UPI transaction is Rs 2 lakh | The upper limit is Rs 200. The total balance of the on-device wallet can be up to Rs 2,000. |
| Is PIN mandatory? | 4 to 6 digit PIN is mandatory | Currently, you don’t need a PIN to send money via UPI Lite |
| Can you send money? | Yes | Yes |
| Can you get money? | Yes | Currently, only debits from your wallet are allowed. All UPI Lite credits will go directly to your bank account |
| Who can use it? | Customers of over 100 banks can access UPI through applications such as BHIM, Google Pay, Paytm, PhonePe or mobile banking apps. | UPI Lite feature has been enabled on BHIM app. At present, customers of eight banks can use this facility. |
| How to check transaction history? | Open the App > Home Screen > Click on View Transaction History | You will receive an SMS daily from the bank with the history of UPI Lite transactions done during the day. |