F . directionsSeptember 23, 2022, 18:44:34 IST
To make low-value UPI payments faster and simpler for users, the National Payments Corporation of India (NPCI) launched UPI Lite on September 20, 2022, Tuesday, at Global Fintech Fest. UPI Lite was launched in Mumbai by Reserve Bank of India (RBI) Governor Shaktikanta Das in the presence of NPCI Adviser Nandan Nilekani.
Notably, it is a feature developed by NPCI to facilitate small value transactions by creating a local wallet on the user’s device which will not require any UPI PIN to make payments. This came days after the NPCI announced a lite version of the UPI.
With the launch of UPI Lite, while it is currently enabled for users on the BHIM app, the feature will soon be available for other popular UPI platforms such as PhonePe, Google Pay, and Paytm.
To learn more about the concept of UPI Lite and how it works, read further for details.
What is UBI Lite?
A feature that creates a local wallet on the smartphone, which helps add money from your basic savings account for various small transactions. Since it is an “on-device” wallet, you do not need the Internet to make transactions.
While there is a limit on the amount of transactions on the wallet, one can use UPI Lite to make payments worth less than Rs 200. However, the maximum wallet balance is Rs 2,000. Apart from that, transactions made from UPI Lite will also not require a UPI PIN, making it convenient for quick payments.
In the meantime, while the wallet currently only allows debits, all credits including refunds will be deposited directly into your primary account. While all the major banks including State Bank of India, HDFC Bank, Punjab National Bank, Kotak Mahindra Bank, Union Bank of India, Indian Bank and Utkarsh Small Finance Bank are operating with this feature, more banks are expected to define it in the future. .
How to use UPI Lite?
Now that we know about UPI LITE, here’s how to use it on your smartphone.
First, download the latest version of NPCI’s BHIM app from the Google Play Store or Apple App Store.
Log in and set up your BHIM app with your UPI-enabled bank account.
On the home screen, find the UPI Lite option and tap to enable it.
Next, go to the information and details displayed and agree to the terms and conditions.
Finally, click on the “Enable Now” option.
Also, select the bank account to fund the wallet when needed.
Add money to the wallet. Setup is finally complete.