What is UPI Lite: daily transaction limits, supported banks, how to transfer funds? www.deekpay.com

Over the past few years, based onUPI Indiaof online transactions has grown significantly. According to theNational Payments Corporation of India (NPCI) data, most of the transactions were for small amounts and therefore NPCI Launched UPI Lite, an offline payment method for micropayments.UPI Lite further enhances India's online payment system in today's digital environment by ensuring that all Indian citizens can use UPI Lite whether they are connected to the internet or not.

What is UPI Lite?

UPI Lite is a joint venture between National Payments Corporation of India (NPCI) andReserve Bank of India (RBI) to launch a payment solution. Launched in 2022, the solution is designed to cater to the needs of users of everyday transactions. UPI This is a simpler alternative to the Rs. This feature is available for low-cost transactions of less than Rs. 500, without the need for PINCode.

UPI Lite operates on the existing UPI ecosystem protocols designed for mobile phones, providing a user-friendly way to facilitate micro-transactions.

Recommended Reading:What is UPI?

Key Features of UPI Lite

Here are the main features of UPI Lite:

UPI Lite enables individuals to initiate payments of up to Rs. 500 per transaction on their preferred online payment application without the need for a UPI PIN. Overall, transactions totalling Rs. 4,000 can be made within 24 hours. Individuals can enjoy the benefits of UPI Lite without going through the KYC documentation process. The remittance and account closure charges associated with the UPI Lite facility are nil. A maximum of Rs. 2,000 can be stored in the user's wallet for UPI Lite account balance. UPI Lite is available only to account holders of a few select authorised banks and financial institutions in India. After setting UPI Lite in online transaction mode, it will automatically become the default payment method for initiating transactions below Rs. 500. An individual cannot enable UPI Lite facility for multiple bank accounts. It allows an individual to easily deposit funds into UPI Lite e-wallet through recharge transactions. If an individual disables their UPI Lite, the balance will be transferred to their bank account as a refund. The issuing bank will monitor and manage any technical issues related to the UPI Lite model.

How UPI Lite works

The mechanism of UPI Lite is that the user deposits funds into his/her UPI Lite account using the associated bank account. Once the funds are deposited, the user can initiate transactions and make fund transfers from their mobile phone, even in offline mode (debit only). However, a stable internet connection is required to deposit funds into the UPI Lite balance and make credit payments.

UPI Lite Daily Limit

In the UPI Lite system, users can spend up to Rs. 4,000 per day while making instant transactions with a fixed limit of Rs. 500 per transaction. In addition, the user can maintain a balance of up to Rs. 2,000 per day in the UPI Lite account.

List of banks supported by UPI Lite

The following is a list of banks and financial institutions that support the UPI Lite mechanism in India as remitters:

Type of Bank/Institution AU Small Finance Bank Public Bank Axis Bank Limited Private Bank Bank of Baroda Public Bank Bank of India Public Bank Canara Bank Public Bank Central Bank Of India Public Bank Cosmos Bank Private Bank Equitas Bank Public Bank Federal Bank Private Bank Fincare Small Finance Bank Limited Public Bank HDFC Bank Limited Private Bank ICICI Bank Private Bank Indian Bank Public Bank Indian Overseas Bank Public Bank Janata Sahakari Bank Limited Pune Scheduled Co-operative Bank Karnataka Bank Private Bank Kotak Mahindra Bank Private Bank Paytm Payments Bank Listed Companies Punjab and Sind Bank Public Bank Punjab National Bank Public Bank Saraswat Bank Multi-State Co-operative Bank State Bank Of India Public Bank Shamrao Vithal Co-operative Bank Co-operative Bank Tamilnad Mercantile Bank Private Bank UCO Bank Public Bank Union Bank of India Public Bank Utkarsh Small Finance Bank Scheduled Commercial Bank Yes Bank Private Banks

Benefits of UPI Lite

Here are the advantages you can gain by choosing UPI Lite as your payment method:

The success rate of transfers has improved with UPI Lite. One-factor authentication for payments under Rs. 500 through UPI Lite has reduced the infrastructure load on the remittance bank, CBS. Payments initiated through UPI Lite are not recorded in the user's passbook, thus providing a clean bank statement. UPI Lite has a simple and user-friendly interface for easy transfer of funds.

UPI Lite vs.

Here are the main differences between UPI Lite and UPI:

Points of differenceUPIUPI Lite productUPI is a 24x7 payment system that facilitates real-time transactions between two bank accounts.UPI Lite is an on-device payment account that facilitates fund transfers between the UPI Lite account and the payee's bank account. Transaction LimitThe maximum amount that can be transferred per day is Rs. 1 lakh. A maximum of Rs. 4,000 can be transferred per day. Transaction volume allows users to make a maximum of 20 transactions in a 24-hour period. there is no limit on the number of transactions in a 24-hour period. However, there is a limit of Rs 500 per transaction. Funds transfer through UPI is not only for sending money but also for receiving money. Currently, only funds can be sent but not received. Any money received will be transferred to the user's linked bank account.PIN Code RequirementThe user has to enter a 4-6 digit PIN code. No PIN code is required to transfer funds. Record The issuing bank updates the record of each transaction in the user's passbook. Transactions made through this account are not recorded in the bank book. However, the user will receive an SMS confirming the status of the transaction.  

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