Top News

The Reserve Bank of India has announced to increase in the wallet limit for UPI Lite from Rs 2,000 to Rs 5,000, promoting the instant payment system through mobile phones. Apart from this, the limit per transaction has also been increased from Rs 500 to Rs 1,000. According to RBI, now a maximum of Rs 1,000 can be sent to a person at a time through UPI Lite. The Reserve Bank circular states, "The increased limit for UPI Lite will be Rs 1,000 per transaction and the total limit at any time will be Rs 5,000." Supports offline transactions Users need a UPI PIN for UPI payments. UPI Lite allows smartphone users to make low-value transactions without a UPI PIN. UPI Lite is a customer-friendly approach that does not depend on the bank's core banking system in real-time. UPI Lite supports offline transactions for person-to-person payments, person-to-merchant payments, and small merchant payments. With UPI Lite, users get an offline debit facility for payment, but it is necessary to be online for credit.

Most merchants use QR code.

Most UPI merchant transactions use static or dynamic QR Code, which requires an online message to reach the recipient to complete the payment. This decision has been taken at a time when RBI is pilot-testing technologies that enable retail digital payments in situations where internet connectivity is low or not available.

RBI had talked about adjusting the limit

Last time in October, RBI had expressed its intention to adjust these UPI payment limits as part of its monetary policy. The central bank had said in its statement on developmental and regulatory policies, "The framework issued by the Reserve Bank under which UPI Lite has been enabled will be suitably modified to facilitate small value payments in offline digital mode."