UPI LITE is a new payment solution to process low value transactions till Rs.200. Users can pay upto Rs.200 without UPI pin. UPI LITE is customer-friendly, enables low value transactions without utilizing the Remitter bank’s core banking systems in real-time and provides adequate risk mitigation. In September 2022, the Reserve Bank of India launched UPI Lite, a digital account designed by the National Payments Corporation of India (NPCI).
What is UPI LITE?
UPI Lite allows users to conduct transactions using an ‘on-device’ wallet and not from a linked bank account. This means users will have to add money to the platform, in the case of Paytm in Paytm wallet to initiate transactions using UPI Lite.
Features of UPI LITE
- The UPI Lite app has a maximum balance limit of Rs 2000 at any given time.
- A maximum of Rs 2000 can be added to the UPI Lite account twice daily.
- This allows for a cumulative transaction limit of Rs 4000 in a day.
- Users can make multiple transactions within the maximum UPI Lite transaction limit.
How to use UPI LITE?
To enable UPI LITE
- User has to open his/her UPI App
- On home screen of the App, user will get the option to enable UPI LITE. Click on the option
- User reads and accepts the terms & conditions
- User enters the amount to add in UPI LITE and select the Bank account
- User enters UPI PIN
- UPI LITE enabled successfully!
How to do payments with UPI LITE?
For making seamless transactions via UPI LITE
- User opens the app
- User chooses to pay
- User enters the amount
- Money Sent Successfully without UPI Pin
Benefits of UPI Lite
- Improved success rate for UPI transactions
- Less infrastructure load on Remitter Bank CBS
- Uncluttered Passbook for users
- One click single factor authentication for UPI transactions of value less than ₹ 200
Important Points
UPI LITE balance should be treated equivalent to cash and the user will be responsible for the balance loaded in LITE account. In case user changes the mobile device, user should disable the LITE account from old mobile device & then enable a new LITE account on the new mobile device. This shall ensure that the LITE balance lying in the older mobile LITE account is pushed back to user account.
In case user lost the device with the active LITE account and balance, user can approach their Bank for refund of balance in the bank account. Bank may perform necessary checks; post which bank may refund money to the user’s bank account. It should be noted that LITE balance will not be fetched in new mobile device if user changes the mobile device .
Also, in case user wants to change the mobile number linked with UPI, user should must disable the LITE account before changing the mobile number.
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