UPI Lite transaction limit: The Reserve Bank of India (RBI) has increased the transaction limit for offline digital payments via UPI Lite. This change is expected to benefit a wide range of individuals, particularly those residing in regions with limited internet connectivity.
Offline UPI Lite transactions do not require entry of a UPI PIN, making them convenient for users. This rise in transaction limit for UPI Lite is especially advantageous for those living in areas with unreliable internet services. Notably, UPI Lite transactions can be conducted without the need to input a UPI PIN.
“For UPI Lite, the enhanced limits shall be Rs 1,000 per transaction with Rs 5,000 being the total limit. Replenishment of used limit shall be allowed only in online mode with AFA,” said the central bank in a statement.
The per-transaction UPI Lite ceiling has been raised from Rs 500 to Rs 1,000, while the total wallet capacity for UPI Lite has been increased from Rs 2,000 to Rs 5,000. This announcement was made by RBI governor Shaktikanta Das during the monetary policy review in October.
UPI Lite and benefits
The UPI initiative is geared towards simplifying small-value digital payments made offline. UPI Lite allows users to easily complete low-value transactions even without an internet connection, thus improving transaction efficiency.
Designed to specifically cater to quick, small-value offline transactions, which are predominant in retail payments across India, UPI Lite allows users to utilise a rechargeable balance for purchases at various establishments such as Kirana stores, pharmacies, restaurants, shops, fuel retail outlets, and more. Furthermore, these UPI Lite transactions are kept separate from the bank passbook, ensuring clearer record-keeping.
Among the benefits of UPI Lite are round-the-clock accessibility, efficient handling of low-value transactions, and simple transaction monitoring. Users can carry out single-click transactions through UPI Lite, set daily spending limits, and avoid publicly entering their UPI Pin for minor payments.
“RBI’s decision to increase the UPI Lite wallet limit to Rs 5,000 and enhance the per-transaction limit to Rs 1,000 marks a significant milestone in fostering a more inclusive digital payment ecosystem. This move directly addresses the needs of individuals in regions with inconsistent internet access by enabling faster, more convenient offline transactions, particularly for small-value payments,” said Dilip Modi, Founder, and CEO, Spice Money.
“With a higher wallet limit, users can store more funds, reducing the need for frequent top-ups and making small-value transactions quicker and easier. The Rs 1,000 transaction cap allows for faster payments without extensive verification, benefiting both consumers and merchants by streamlining the process,” said Mohan K, Founder, TechFini.