UPI Lite: In view of the growing craze of UPI payments, the Reserve Bank of India has increased the limit of UPI Lite transactions. While promoting the instant payment system through mobile phones, RBI has increased the wallet limit for UPI Lite to Rs 5000, earlier its transaction limit was Rs 2,000. Increasing the transaction limit will make it easier for people to transact.
Apart from increasing the transaction limit, the limit per transaction has also been increased from Rs 500 to Rs 1,000. According to RBI, now a maximum of Rs 1,000 can be sent to a person at a time through UPI Lite. The Reserve Bank circular states, “The increased limit for UPI Lite will be Rs 1,000 per transaction and the total limit at any time will be Rs 5,000.
For UPI payments, the user needs a UPI PIN. UPI Lite allows smartphone users to make low-value transactions without the UPI PIN. UPI Lite is a customer-friendly approach that does not rely on the bank’s core banking system in real time.
UPI Lite supports offline transactions for person-to-person payments, person-to-merchant payments and small merchant payments. With UPI Lite, users get offline debit facility for payment, but it is necessary to be online for credit. Most UPI merchant transactions use static or dynamic QR codes, which require an online message to reach the recipient to complete the payment. This decision has been taken at a time when RBI is pilot testing technologies that enable retail digital payments in situations where internet connectivity is low or not available. Input-IANS
