UPI Lite: How to Make Quick, Small-Value Payments Without a PIN
Introduction
The RBI introduced “UPI Lite” in September 2022 to facilitate small-value payments quickly. With every passing month and year, UPI usage of payment via the Internet rises. UPI transactions in India alone were over 7.82 billion in December 2022. However, most UPI payments occur in small-ticket purchases.
Consequently, the NPCI created an on-device wallet functionality dubbed UPI Lite to make tiny UPI transactions convenient and dependable without risking payment failures. Check out our explainer to learn what UPI Lite is and how to utilize it. In this post, we’ve also addressed installing and setting off UPI Lite on your mobile device.
What is UPI Lite
A digital account called UPI Lite was established to help with low-value transactions. Small ticket payments will get quicker and more accessible due to this creativity. The maximum transaction value for UPI Lite is Rs 200. The market leader Paytm has launched UPI Lite, allowing consumers to make transactions up to Rs. 200 with an aggregate cumulative limitation of Rs. 4000.
The maximum sum which can be kept on the UPI Lite app at any given time is Rs 2000.
The UPI Lite account can receive two days for up to Rs 2000.This permits a daily limit of Rs 4,000 in total purchases.
Under the maximum UPI Lite transaction limit, users can finish several transactions. The UPI Lite app enables users to load Rs 2000 and use the remaining balance to execute transactions until it is entirely used. The maximum value of a transaction is Rs 200.
As a result, a user can carry out numerous transactions until the limit is met. For instance, a user could hit the daily UPI Lite transaction limit of Rs 2000 through 6 transactions totalling Rs 200, 4 transactions costing Rs 150, and 20 transactions comprising Rs 10.
However, users may add Rs 2000 to their UPI Lite account if they need more daily transactions. Additionally, UPI Lite speeds the transaction technique by removing the requirement for a four or 6-digit PIN.
What is UPI Lite’s working process?
Using UPI Lite is comparable to using an on-device wallet and make small-value payments.It is easy to send money without PIN. Just turn on UPI Lite in one of these compliant apps and add money (up to Rs 2000) using your UPI account. You can scan any QR code or enter a phone number to pay a sum under Rs 200 without a PIN once the funds are credited to your digital wallet.
The main distinction between traditional and UPI Lite wallets is that cash will be transmitted straight to the user’s UPI account. This is done to reduce the strain on the CBS (Core Banking System) of banks in periods with high UPI usage, which may be used for high-value transactions. In basic terms, basic banking has now gone from banks to apps because of UPI Lite.
How to set up Paytm with UPI Lite
UPI Lite configuration in Paytm:
- – On any iOS or Android smartphone, download the Paytm app.
- – On the home page, hover over or tap the “Profile” button in the top left corner.
- – Select “UPI & Payment Settings”, then pick “UPI Lite” from the list of choices under “Other Settings”.
- – On the “Add Money to Activate UPI Lite” page, select the bank that qualified for UPI Lite and enter the sum of money you want to add to your UPI Lite bank.
Benefits of UPI Lite
The following are some of the critical advantages of UPI Lite:
- Reduced Clutter on Bank Passbook: When frequent, high-volume, inexpensive transactions are done using UPI Lite, there will be less data about transactions on the bank Passbook done by GPay.
- Simple Small Value Transactions: This component of UPI Lite will meet the needs of typical transactions of a typical person. Daily transactions, including small purchases of Rs 1 to Rs 200, would be done faster and more efficiently.
- No Limit on Transactions: No limit exists on the number of activities a user utilizing UPI Lite may execute. Given the total monthly sum, a user can make many little payments because there is no cap on the number of transactions.
- Use Without PIN – Like other payment methods like debit or credit cards or internet banking, users using UPI Lite are not needed to provide a 4- or 6-digit PIN. Users can thereby avoid the hassle of entering a PIN for everyday life and send money without PIN, small transactions.
| UPI | UPI Lite |
| A user can transfer funds through UPI from one bank to another, depending on IMPS. | With UPI Lite, an on-device wallet, users can send cash directly via your wallet to a financial account. |
| UPI PIN is needed in order to complete a transaction. | Does Not require any PIN. |
| The maximum transaction amount is Rs. 2 lakh. | The UPI Lite wallet’s maximum is Rs 200, and it can be filled off with up to 2000 rupees. |
| For phones with features, offline payment via USSD code is possible. | Although offline mode has been promoted, we have not yet tried it. |
| From any UPI account, money may be transferred. | One UPI account is permitted only to add cash to the UPI Lite wallet. |
| Scan any QR code, phone number, UPI ID, or account number to initiate a payment. | Scan any QR code, phone number, UPI ID, or account number to initiate a payment. |
| Despite becoming quick, credit can occasionally be postponed. | Payment is prompt and reliable. |
| Over two hundred banks can use UPI. | Only nine banks presently have access to UPI Lite. |
| The statement from your bank displays the transaction history. | The only place transaction history appears in the app. |
| Relies on the UPI infrastructure | Do not depend on UPI infrastructure. |
| Multiple applications support | BHIM and the Paytm app now offer UPI Lite. |
Conclusion
Low-value transactions will be speedy, easy, and seamless because of UPI Lite. Once the UPI Lite Accounts have been set up, users can send quick payments of Rs 200 one at a time. Users can conduct limitless transactions with a cumulative maximum daily value of Rs 4000.
To make the payment, all one has to do is go onto their UPI LITE Account and have an on-device wallet. UPI Lite transactions are more beneficial because consumers won’t need to enter PINs. Learn a lot more about UPI Lite by installing the Paytm app or Google pay or BHIM UPI.
Frequently Asked Questions
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