Good news for UPI users. The Reserve Bank of India (RBI) has raised the limit for each transaction made via UPI Lite. On Wednesday, the Reserve Bank of India (RBI) raised the transaction limit from Rs 500 to Rs 1,000. The overall cap for a UPI wallet stands at Rs 5,000. Following this regulation, users will have the ability to conduct five transactions of Rs 1,000 each.
Transactions occur without AFA
Transactions conducted through UPI Lite operate offline in the sense that they do not necessitate AFA. Additionally, alerts related to transactions are not provided instantaneously. Offline payments are transactions that do not need internet or telecom connections on a mobile device. Besides this, there’s no requirement to input the PIN repeatedly when making payments from the wallet.
The Reserve Bank of India (RBI) announced that the new cap for UPI Lite will be Rs 1,000 for each transaction, while the overall transaction limit from the wallet will be Rs 5,000. With this higher limit, users can withdraw the entire amount from their wallet up to 5 times. Currently, there remains a substantial cap of Rs 500 for transactions in offline payments. As a result, the maximum allowance for offline transactions at any given moment is Rs 2,000.
The wallet limit had been raised previously too
The Reserve Bank modified the rules of the ‘Offline Framework’ released in January 2022 to streamline small value digital payments for offline transactions. The central bank announced in October this year a rise in the limit for offline UPI Lite payments.
