The Reserve Bank of India (RBI) has increased the transaction limit for UPI Lite from Rs 200 to Rs 500, enabling users to transmit up to Rs 500 without a pin. The National Payments Corporation of India (NPCI) and RBI launched UPI Light, a streamlined version of the original UPI payment system, in September 2022. This move intends to enhance the usage of UPI Lite. Governor Shaktikanta Das suggested raising the transaction cap for small-value digital payments made offline from Rs 200 to Rs 500 while maintaining the per-payment instrument cap of Rs 2,000. These programs seek to broaden the application and penetration of digital payments in India.
UPI Lite: What is it?
The purpose of UPI Lite is to make hassle-free small-value transactions possible while lessening the effects of processing errors that occasionally occur during standard UPI transactions. There is no need for a UPI pin for this kind of transaction.
You must add funds from your bank account to the app's wallet before you can use UPI Lite. These pre-loaded funds can then be used to make payments through UPI Lite. It's crucial to keep in mind that an on-device wallet's maximum UPI Lite balance limit is Rs 2,000.
Upcoming integration of NFC and AI with UPI
In addition, RBI plans to launch UPI Lite, which will allow offline payments on UPI utilizing near-field communication (NFC) technology. With the help of this functionality, customers will be able to use digital payments even in places with spotty or nonexistent internet service. This will increase the reach of digital payments in more remote locations.
The Governor of the RBI, Shaktikanta Das, emphasized the launch of "Conversational Payments" via UPI. With the use of chat systems that are powered by AI, consumers can now participate in money transactions. This might entail expediting the payment process and boosting consumer convenience by allowing users to make payments using online messaging or chat systems.
English and Hindi will be the first two Indian languages in which "Conversational Payments" will be implemented, with intentions to add others later. In order to roll out this feature, the RBI will give the NPCI instructions.
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