The COVID-19 pandemic has forced all of us to shift towards digital payments as they are quick, contactless and easy. While there are many ways to make digital payments, one of the most commonly used methods in our country is: is i (Unified Payment Interface). There are many platforms that can be used to make UPI based payments such as Google Pay, PhonePe, Paytm and others. However, all these platforms require an active internet connection to make payments.
So if you ever get stuck in a situation where you have poor or no internet connection, you have the option of just using 123Pay or USSD-based UPI service to make digital transactions. Since none of these methods support QR code based payments, transacting can be a daunting task. With an aim to help users in such cases, the National Payments Commission of India (NPCI) has launched a new UPI service, namely UPI Lite, Wonder what it is, here’s your answer.
What is UPI Lite
UPI Lite is an on-device wallet feature seen on popular digital payment apps like Paytm, Freecharge, MobiKwik and others. This feature will allow you to rapidly make real-time small value payments without an internet connection through money added to the wallet.
In the first phase, UPI Lite will process the transaction in almost offline mode i.e. debit offline and credit online, and later, UPI Lite will process the transaction in complete offline mode i.e. both debit and credit offline.
What is the transaction limit on UPI Lite
As per NPCI, only debits from Wallet Balance will be allowed and all credits to UPI Lite (including refunds etc.) will be processed online in your bank account maintained in the core banking system of the bank.
The upper limit for UPI Lite payment transaction will be Rs 200. The total limit for UPI light balance for Walter will be Rs 2,000 at any point of time. You will be able to add funds to UPI Lite Wallet in online mode only with Additional Factor Authentication (AFA) or by using UPI AutoPay, which is registered by you in online mode with AFA.
When will UPI Lite be launched?
NPCI has not revealed any specific date for the launch of UPI Light, As per the circular issued by the Special Division of Reserve Bank of India (RBI), UPI Lite will be initially launched as a pilot with multiple banks and app providers, and after due relaxations are received, complete with compliance time frame. Commercial launch will be done on a large scale. On-boarding will be announced for issuers and app providers.