The Reserve Bank of India (RBI) on Thursday announced that it has increased the transaction limit for UPI Lite from Rs 200 to Rs 500. This means individuals can now use UPI lite to send up to Rs 500 without a pin.
The move is aimed at increasing the adoption of UPI lite, which is the simplified version of the original UPI payment system, introduced by the National Payments Corporation of India (NPCI) and RBI in September 2022.
RBI Governor Shaktikanta Das said, “With the objective of harnessing new technologies for enhancing the digital payments experience for users, it is proposedâ€æ to enhance the transaction limit for small value digital payments in off-line mode from Rs 200 to Rs 500 within the overall limit of Rs 2,000 per payment instrument. These initiatives will further deepen the reach and use of digital payments in the country.”
What is UPI Lite?
UPI Lite was designed to facilitate hassle-free small-value transactions, reducing the impact of occasional processing failures faced by users during regular UPI transactions. This kind of transaction does not require a UPI pin.
To start using UPI Lite, you need to deposit money into the wallet within the app from your bank account. Later, you can utilise these pre-loaded funds to make payments through UPI Lite. It’s important to remember that the maximum balance limit for UPI Lite within an on-device wallet is set at Rs 2,000.
NFC, AI integration with UPI soon
Furthermore, RBI is set to introduce offline payments on UPI using near-field communication (NFC) technology through UPI Lite. This feature will enable users to make digital payments in situations with limited or no internet connectivity, extending the accessibility of digital payments to remote areas.
RBI Governor Shaktikanta Das highlighted the introduction of “Conversational Payments” on UPI. This innovative feature allows users to engage in payment transactions through AI-powered conversation systems. This could involve making payments within online messaging or chat platforms, streamlining the payment process and enhancing user convenience.
The implementation of “Conversational Payments” will initially be available in Hindi and English, with plans to expand to other Indian languages. The RBI will issue instructions to the NPCI for the roll-out of this feature.
Source By: indiatoday
