If you live in India then you might have already seen the growth of UPI in the recent few years.
It's hard to imagine a life without UPI nowadays.
Reserve Bank of India (RBI) is constantly coming up with new enhancements and features
around UPI to increase countrywide adoption of UPI at all levels of our society be it a tier
1 metro city or a village in the outskirts.
Recently RBI governor Shaktikanta Das launched a service called UPI Lite in their quest to
make UPI transactions, even more, faster than ever.
While using UPI you might have experienced transaction failures sometime due to low
internet bandwidth in certain locations. With UPI Lite, RBI wants to solve this issue. Also
with the increase in UPI adoption small shops including roadside vendors on carts have also
started accepting UPI payments. While paying for small transactions like these, users are
required to go through a process of authentication on the UPI apps on mobile. But with the
introduction of UPI Lite, this problem is going to get solved.
UPI Lite is an on-device wallet using which users will be able to make payments for small
value transactions without the need to enter UPI pin. Users will be able to use this feature
for payments up to Rs. 200. To use this feature, users will be required to add funds up to a
limit of Rs. 2000 into their UPI wallets. Then they can use this wallet to make payments
even without the need for UPI Pin. Add to that, this feature doesn't require the device to
be connected to the internet since it is an on-device wallet. This will ensure you can pay
at your favorite shop even if your internet is not working or the UPI app is not working
properly during peak hour traffics.
Using UPI Lite, users will be allowed to perform unlimited transactions in a day. At the
time of posting this article, currently, eight banks are live with the UPI Lite. These are
State Bank of India, HDFC Bank, Indian Bank, Canara Bank, Kotak Mahindra Bank, Punjab
National Bank, Union Bank of India, and Utkarsh small finance Bank. Though the list is gonna
increase in a few days as the adoption increases.
Do you use UPI to make payments?
Let me know your thoughts by commenting below.