The Unified Payments Interface (UPI), developed and managed by the National Payments Corporation of India (NPCI), has become an essential part of daily transactions for many due to convenience. As digital payments are gaining popularity rapidly these days, NPCI also recently launched UPI Lite service for the convenience of many users.
Think of United Payments Interface (UPI) and UPI Lite as two different options in the world of digital payments. UPI is a full-featured service, offering seamless transactions between multiple bank accounts and a wide range of services. It works 24/7, allowing you to transfer money instantly between bank accounts using your smartphone. You can use various methods like a virtual ID, bank account number, mobile number or QR code to send money through UPI, and you can manage multiple transactions in one mobile app.
Also Read: Federal Bank Extends UPI For NRIs; Here’s What Customers Need To Know
On the other hand, UPI Lite is a simplified version, catering to users who just need basic functionality.
What is UPI Lite?
In September 2022, the Reserve Bank of India (RBI) introduced the UPI Lite version. It’s a feature that acts like a digital wallet on your mobile phone. With UPI Lite, you can make quick payments for small amounts without needing a UPI PIN. The best part is there is no limit on daily transactions under UPI Lite. The users can carry out multiple low value transactions UPI Lite in a day.
It’s designed to make digital transactions easy for every Indian, even if they don’t have a strong internet connection. This means that UPI Lite will help more people use digital payments, which is great for expanding the reach of digital payments.
Users can make payments up to Rs 200 per transaction instantly without using any PIN. The users can add a maximum of Rs 2,000 twice daily to their wallet, which means the daily wallet limit is capped at Rs 4,000.
Difference between UPI Lite and UPI?
The major difference is the ease of transaction and the amount you can pay or transfer. While there is a daily transaction limit on UPI payments, under UPI Lite you can make any number of payments of up to Rs 200 per transaction. At the same time a user need not enter UPI PIN to complete the transaction under UPI Lite.
While regular UPI comes with several features, UPI Lite is only aimed at making low value payments. The objective is to increase the adoption of digital payments among users who are not so tech-savvy.
UPI vs UPI Lite: Who can use it?
The UPI Lite feature has been added to the BHIM app, according to NPCI. Right now, customers of eight banks can use UPI Lite through the BHIM app. These banks include Canara Bank, HDFC Bank, Indian Bank, Kotak Mahindra Bank, Punjab National Bank, State Bank of India, Union Bank of India, and Utkarsh Small Finance Bank, according to NPCI.
Can you use UPI Lite without the internet?
During the first phase, UPI Lite will handle transactions in a nearly offline mode. This means you can make payments (debit) without needing an internet connection, but when money is added to your account (credits), it will be updated online. This approach was mentioned earlier by NPCI.
UPI vs UPI Lite: How to check the transaction history?
The customers, who use UPI Lite receive a daily SMS from their bank that shows a summary of all the UPI Lite transactions they make during a day. UPI users, on the other hand, can check their transaction history within the UPI mobile app to keep track of their past transactions.
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