RBI increased UPI Lite Limit to Rs.1,000, Now you can transfer money quickly without PIN, Know How

In the recent MPC meeting, The Reserve Bank of India (RBI) has announced significant updates to the Unified Payments Interface (UPI) aimed at making digital payments easier and more accessible for everyone. The limit for UPI Lite transactions has increased from ₹500 to ₹1,000, and the overall wallet limit for UPI Lite has increased from ₹2,000 to ₹5,000.

The RBI Governor emphasized how UPI has transformed India’s financial landscape, stating, “UPI has made digital payments accessible and inclusive through ongoing innovation and adaptation. To promote wider adoption of UPI and enhance its inclusivity, we have decided to raise the per-transaction limit in UPI123Pay from ₹5,000 to ₹10,000, increase the UPI Lite wallet limit from ₹2,000 to ₹5,000, and raise the per-transaction limit from ₹500 to ₹1,000.”

Previously, UPI Lite had a transaction limit of ₹500 and a wallet limit of ₹2,000, with an option for auto-replenishment. To enhance its usability, the RBI has now raised the UPI Lite wallet limit to ₹5,000 and the per-transaction limit to ₹1,000. The guidelines for enabling small-value payments through offline digital methods, including UPI Lite, will be updated accordingly.

What is UPI Lite?

UPI Lite is a simplified version of the popular Unified Payments Interface (UPI), specifically designed for small-value transactions. It allows users to make quick, PIN-less payments, offering a hassle-free experience for daily purchases like groceries, transportation, or small retail items. Rather than pulling money directly from the user’s bank account for each transaction, UPI Lite works like a wallet, where users can maintain a balance of up to ₹5,000. This makes transactions faster and reduces the burden on the core banking system, which is particularly helpful for handling high volumes of low-value payments.

How to Setp up UPI lite on Paytm?

• Step 1: Open the Paytm app on your smartphone.
• Step 2: Open the app and click on your profile in the top left corner. Then, select ‘UPI & Payment Settings’ and click on ‘Activate UPI Lite’. Alternatively, you can use the search bar by typing ‘UPI Lite’ and selecting ‘Setup UPI Lite’.
• Step 3: Enter the amount to activate UPI Lite and choose your preferred mode of payment. Then, click on ‘Proceed’.
• Step 4: Your UPI Lite will be activated for small-value transactions.

How to Setp up UPI lite on PhonePe?

• Step 1: Open the PhonePe app.
• Step 2: On the home screen, look for the option to enable UPI LITE.
• Step 3: Enter the amount to add to UPI LITE and select your bank account.
• Step 4: Enter your UPI PIN to enable the UPI LITE account successfully.

How to Setp up UPI lite on GooglePay?

• Step 1: Open the Google Pay app.
• Step 2: Tap your profile picture at the top right.
• Step 3: Select “Pay PIN-free UPI Lite.”
• Step 4: Enter the amount you want to add.
• Step 5: Enter your UPI PIN.