Covid-19 pandemic has forced us all to shift towards digital payments as they are quick, contactless and easy. While there are various ways to make a digital payment, one of the methods that is used most in our country is the UPI (Unified Payment Interface). There are several platforms that one can use to make UPI based payments such as Google Pay, PhonePe, Paytm and others. However, all these platforms require an activer internet connection in order to make a payment.
So if you are ever stuck in a situation where you have poor or no internet connection, you only have the option to use 123Pay or USSD-based UPI service to make a digital transaction. As none of these methods have support for QR code based payment, making a transaction can be a tedious task. With an aim to help users out in such instances, National Payments Commission of India (NPCI) has launched a new UPI service called UPI Lite. Wonder what it is, here’s your answer.
What is UPI Lite
UPI Lite is an on-device wallet feature similar to the ones seen on popular digital payments apps such as Paytm, Freecharge, MobiKwik and others. The feature will allow you to make faster near real-time small value payments without internet connection via the money added in the wallet.
In phase one, UPI Lite will process transactions in near offline mode i.e. debit offline and credit online, and at a later point, UPI Lite will process transactions in complete offline mode i.e. debit and credit both offline.
What is the transaction limit on UPI Lite
As per NPCI, only debit from wallet balance will be permitted and all credits to UPI Lite (including refunds, etc.) will be processed online in your bank account maintained in the bank’s core banking system.
The upper limit of an UPI Lite payment transaction will be Rs 200. The total limit of UPI Lite balance for wallter will be Rs 2,000 at any point of time. You will be able to add funds in the UPI Lite wallet only in online mode with additional factor authentication (AFA) or using UPI AutoPay which has been registered by you in online mode with AFA.
When will UPI Lite launch
NPCI has not revealed any specific date for the launch of UPI Lite. As per the circular issued by the Reserve Bank of India (RBI) specialised division, UPI Lite will be initially launched as a pilot with multiple banks and app providers, and after a due comfort is achieved, the full scale commercial launch with compliance timelines for on-boarding for the issuers and app providers will be declared.