UPI Lite: On Wednesday, the Reserve Bank of India (RBI) raised the wallet cap in ‘UPI Lite’ to Rs 5,000 and set the transaction limit to Rs 1,000 to encourage the use of the instant payment system. Transactions using UPI Lite operate offline to the degree that they don’t need an ‘additional factor of authentication’ (AFA). In addition to this, alerts concerning transactions are also not delivered in real time. Offline payments refer to transactions that don’t need internet or telecom connections on mobile devices.
The RBI has issued a circular
The Reserve Bank stated in a circular, “The enhanced limit for UPI Lite will be Rs 1,000 for each transaction with an overall limit of Rs 5,000 at any given time.” At present, the maximum amount for offline payment transactions is Rs 500. Consequently, the maximum cap for offline transactions on a payment device at any point is Rs 2,000. The Reserve Bank revised the rules of the ‘offline framework’ released in January 2022 to support small value digital payments in offline dealings.
Central bank declared in October this year that it would raise the limit for offline payments
The central bank declared in October this year that it would raise the limit for offline payments using UPI Lite. UPI (Unified Payments Interface) is a digital payment platform enabling users to conduct immediate bank transactions any time, day or night. It consists of two primary versions: UPI and UPI Lite.
Basic difference between UPI and UPI Lite
UPI is a digital platform that operates through an internet connection and is extensively utilized for transactions.
UPI Lite is a payment system that operates offline, enabling small-value transactions without requiring internet access.