The Reserve Bank of India has made key updates to UPI Lite, enhancing its convenience and usability for millions of users. These changes include higher transaction and wallet limits, aim to simplify small-value digital transactions and accelerate the adoption of digital payment solutions across the country.
Higher Limits for UPI Lite
The RBI has raised the UPI Lite per transaction limit from Rs 500 to Rs 1,000. This change enables users to make payments of up to Rs 1,000 without entering a PIN, making it faster and more convenient for low-value transactions. Additionally, the wallet limit for UPI Lite has been increased from Rs 2,000 to Rs 5,000. This ensures users can store more funds for multiple transactions without needing frequent top-ups.
What is UPI Lite and How Does It Work?
UPI Lite is a simpler version of the Unified Payment Interface (UPI) designed for small-value transactions. Unlike standard UPI transactions, UPI Lite allows payments without entering a PIN, significantly reducing the time and effort involved. Previously, UPI Lite transactions were limited to Rs 500 per payment. But now it has increased to Rs 1000.
Steps to Activate UPI Lite
- Install a UPI-enabled app like Google Pay, PhonePe, or Paytm from your app store.
- Then link your bank account to the app and create a UPI PIN.
- Now navigate to the app’s settings and activate the UPI Lite feature.
- Then ensure your bank supports UPI Lite and connect it to the app.
- Now choose a transaction limit, up to ₹1,000 per payment.
- Your are ready to Use UPI Lite for small payments without entering a PIN.
UPI 123PAY Limit Revised
To support the broader adoption of digital payments, the RBI has also increased the transaction limit for UPI 123PAY from ₹5,000 to ₹10,000. UPI 123PAY is specifically designed for users without access to smartphones, ensuring financial inclusion for a wider demographic. The increased limit enhances its utility, particularly in rural and semi-urban areas.
