The Reserve Bank of India (RBI) on Wednesday raised the UPI Lite wallet limit to ₹5,000 and the per-transaction limit to ₹1,000 to encourage greater use of the instant payment system via mobile phones. UPI Lite transactions function offline, as they do not require an Additional Factor of Authentication (AFA), and transaction alerts are not sent in real-time.
Previously, the maximum limit for offline payments was ₹500 per transaction, with a total cap of ₹2,000 per payment instrument at any given time.
Updated Offline Payment Framework
The RBI also amended its ‘offline framework’, originally introduced in January 2022, to promote small-value digital payments in offline mode.
“The enhanced limits for UPI Lite shall be ₹1,000 per transaction, with ₹5,000 as the total limit at any point in time,” stated an official circular from the Reserve Bank.
This revision follows an earlier announcement made by the central bank in October.
What Are Offline Payments?
Offline payments are transactions that do not require internet or telecom connectivity to be processed, offering convenience in areas with limited network availability.
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