UPI Lite: What is it and how is it different? Check out the features, limitations and more

There is no doubt that Unified Payments Interface (UPI) has transformed the digital payments ecosystem. Every user can make payments anytime, anywhere by simply entering their phone number or scanning a QR code. With the growing popularity of UPI, NPCI has been rolling out new features and services to ensure seamless service. One of the important additions to the cashless payment service recently introduced by RBI is UPI Lite. It not only helps streamline everyday small value transactions but also helps make payments without an active internet connection.

What is UPI Lite?

UPI Lite is an online wallet developed by the National Payments Corporation of India (NPCI) to make small value payments without the need for a UPI PIN. The wallet is available on select UPI apps like BHIM, Google Pay, and Paytm. Like UPI, users can make transactions using UPI QR codes or transfer funds using VPA, mobile number, bank account, and UPI ID.

UPI Lite provides a reliable and hassle-free alternative payment solution for users who frequently make small payments on a daily basis. The simple payment process makes it easy and efficient to pay for groceries, taxi rides or snacks at a restaurant.

How is UPI Lite different from UPI?

While UPI is an advanced digital payment system that allows users to make transactions up to ₹1 lakh per day, UPI Lite is a simpler version designed to make small value payments with each transaction worth ₹500 and transaction limits of ₹4,000 per day. It is based on an electronic wallet system that is capable of storing ₹2,000 is the balance at a time. While UPI requires users to enter a PIN every time while transferring money, this is not required in case of UPI Lite.

What are the benefits of using UPI Lite?

UPI Lite allows users to keep a record of their transactions within the UPI app. Since these transactions are not shown in the bank passbook, users can easily keep track of small value transactions on a daily basis. Moreover, the latest version of UPI Lite called UPI Lite X allows users to transact money without an internet connection. However, it has a limit of 10 credit transactions and 1 debit transaction per day.

How to create UPI Lite account?

Step 1: New users can download a UPI app like Google Pay or Paytm and link their bank account to start the UPI Lite feature.

Step 2: Select the UPI Lite activation option on the UPI app. Agree to all the terms and conditions.

Step 3: Fill in the amount [max up to 2,000] you want to add to UPI Lite wallet.

Step 4: Finally, enter the MPIN code to process the money transfer transaction to the UPI Lite wallet.

Once the total amount is added up, the user can make a payment for any transaction worth ₹500 without entering UPI PIN. Transaction can be done using QR code or recipient’s mobile number.

Users can follow the above steps to top up their UPI Lite balance.

UPI Lite promises a fast and secure payment method. It maintains the quality standards of UPI and ensures a seamless and hassle-free experience for the users.