The Reserve Bank of India (RBI) has launched UPI Lite in India for low value transactions. UPI Lite works like UPI but aims to be faster and easier. Interestingly, UPI Lite allows users to make payments without an internet connection, allowing users to send money quickly even during downtime and peak times. Also Read – How to Use WhatsApp to Make and Receive UPI Payments in the Chat Window
UPI Lite requires no PIN, no internet: Check out the features
Unlike UPI, which accesses a bank account directly and sends or receives money, UPI Lite is an “on-device” wallet. A wallet where users can add funds and use it to send money to someone instantly. One of the outstanding features of UPI Lite is that it works without an internet connection. Also Read – UPI Transactions in India to Hit 657 crore in August 2022, NPCI Says
Since it is a wallet, users need to add funds to the wallet while online (with internet access), and even if there is no internet access, users can send money to anyone instantly. Note, however, that the money will not be credited if the recipient is offline (without internet access). He/She receives money if there is an active internet connection. However, NPC plans to take UPI Lite offline completely. Also read – Discovery Plus Launches UPI AutoPay Feature for Automatic Payments in India
In addition, UPI Lite does not require a UPI pin, it directly accesses and uses the funds in your wallet. One thing to note here is that there is a limit to how much money you can add to your UPI Lite wallet. As it works without internet only up to Rs 2000 can be added to your wallet. Also, you can send a maximum of Rs 200 per transaction.
However, you can make unlimited transactions in one day. It is believed that UPI Lite is intended for low value payments. This eliminates the need to carry cash with you all the time as it is offline and many users are expected to use this feature. It also means you don’t have to buy chocolates or candy just because change isn’t available.
The UPI Lite feature is currently available in the BHIM app. They can access the wallet and add their funds. There are currently eight banks that support the UPI Lite feature. These include State Bank of India, Union Bank of India, HDFC Bank, Indian Bank, Canara Bank, Punjab National Bank, Kotak Mahindra Bank and Utkarsh Small Finance Bank. We can assume that other banks will support the feature soon.
