UPI Lite Transaction Limit: The facility of UPI Lite was launched by the Reserve Bank of India, to promote digital payments. UPI Lite was launched in September 2022 to simplify the transaction process from UPI.
So far this service has been started by platforms like PhonePe and Paytm. Transactions through UPI have increased in the last few years. Payment is being done through UPI in most of the cities of the country. UPI is also used by small to big vendors. According to the NPC I circular issued in May 2022, 50 per cent of the total UPI transactions across the country are of value Rs 200 and below. Because of this, due to increase in traffic, many times the payment gets stuck. Apart from this, it also takes time to add the PIN to UPI and follow other procedures.
For the same reason, UPI Lite was introduced to enable instant payments and reduce traffic in banks. The BHIM app already allows transactions through UPI Lite. At the same time, Paytm has become the first digital payment app to launch UPI Lite on its platform.
what is upi lite
UPI Lite allows users to transact using an ‘on-device’ wallet and not a linked bank account. This means that without visiting the bank, you can make quick payments using just the wallet. However, you have to put money in the wallet.
what amount can be paid
Once this feature is set up, UPI Lite wallet users will be allowed to make instant transactions of up to Rs 200. You can easily transfer this money to anyone without entering the UPI PIN or verifying the transaction. Notably, users can add a maximum of Rs 2,000 to UPI Lite twice a day. That is, Rs 4000 can be used every day.
Benefits of UPI Lite
UPI Lite will reduce the chances of fraud in transactions, as transactions can be done only up to a limit. Banks can make low cost UPI payments without worrying about daily transaction limits. UPI Lite makes it easy to do low cost UPI transactions. Also, users can transfer UPI balance back to the same bank account anytime without any charges.
How Paytm users will be able to setup
To set up UPI Lite in Paytm, open the Paytm app on your iOS or Android smartphone. Then on the top left corner of the home page "profile" Tap on the button. Now "UPI & Payment Settings" choose and then "other settings" under the section "UPI Lite" choose. Now select the account which is eligible for UPI Lite. Add balance to activate it. Now you can use it.
Read the Latest India News Today on The Eastern Herald.
