UPI Lite has further enhanced India’s online payments system in today's digital landscape, ensuring accessibility for all Indian citizens, regardless of internet connectivity. This article will walk you through a detailed guide on UPI Lite while highlighting all the details you need to know.
What is UPI Lite?
UPI Lite is a payment solution enabled by a collaboration between the National Payments Corporation of India (NPCI) and the Reserve Bank of India (RBI). Introduced in 2022, its purpose is to cater to the needs of users involved in everyday transactions.UPI Lite is a simpleralternative to the UPI. The facility ismeant for low-cost transactions below Rs. 500 without the need for a PIN.
UPI Lite operates based on the existing UPI ecosystem protocols designed for mobile phones, offering a user-friendly approach to facilitate small-value transactions.
Key Features of UPI Lite
Here are thesalient features of UPI Lite that you need to know before initiating any payments:
- UPI Lite enables individuals to initiate payments of up to Rs. 500 per transaction on their preferred online payments app without requiring the UPI PIN. Overall, a total transaction of Rs. 4,000 is allowed in 24 hours.
- Individuals do not have to undergo the KYC documentation process to avail the benefits of UPI Lite.
- UPI Lite facility comes with zero associated money transfer and account closure charges.
- Users can store a maximum UPI Lite account balance of Rs. 2,000 in wallets.
- UPI Lite is only accessible to account holders of a few specific authorised banks and financial institutions in India.
- After setting up UPI Lite as the online mode of transaction, it automatically becomes the default payment method for initiating transactions less than Rs. 500.
- Individuals cannot enable the UPI Lite facility for multiple bank accounts.
- It allows individuals to easily credit funds in their UPI Lite eWallet by making a top-up transaction.
- In the event an individual disables his/her UPI Lite, the remaining balance will be transferred to his/her bank account as a refund.
- The issuing bank will monitor and regulate any technical issues associated with UPI Lite mode.
How does UPI Lite Work?
The mechanism of UPI Lite involves a userdepositing funds into his/herUPI Lite account using a linked bank account. Upon adding the funds, users can initiate transactions and facilitate fund transfers even in offline mode (debit only) through their mobile phones. However, a stable internet connection is required to add funds to the UPI Lite balance and make credit payments.
How to Use UPI Lite?
TheUPI Lite payment feature can be used via multiple payment gateways in India. Some of these are discussed below:
Via Google Pay
The following is a step-by-step guide on how to use UPI Lite via Google Pay:
Step 1: Install the Google Pay app on your device.
Step 2: Open it and navigate to your profile picture at the top right side of the screen.
Step 3: Click on ‘Pay PIN-free UPI Lite’.
Step 4: Enter the amount you want to add. An individual can add up a maximum value of Rs. 2,000.
Step 5: Provide the UPI PIN.
Once you go through the above steps, the specified amount will be deducted and added to your UPI Lite balance account.
Via PhonePe
Here is a stepwise process you need to follow to use UPI Lite via PhonePe:
Step 1: Download the PhonePe app on your device.
Step 2: Open the app and tap on your profile picture.
Step 3: Click the ‘UPI Lite’ option under ‘Payment Methods’.
Step 4: Specify the desired amount you want to add. Individuals can add up to Rs. 2,000.
Step 5: Select the bank account and enter the UPI PIN.
The UPI Lite account will be enabled to make payments successfully.
Via Paytm
Here’s how you can use UPI Lite via Paytm:
Step 1: Go to the Paytm app on your mobile.
Step 2: Open it and navigate to your profile picture at the top left side of the screen.
Step 3: Click the ‘UPI & Payment Settings’ and tap the ‘UPI Lite’ option in ‘Other Settings’.
Step 4: Select the bank account supported by UPI Lite.
Step 5: Specify the desired amount you want to add and click the ‘Add Money to UPI Lite’ button.
Step 6: Enter the MPIN.
The UPI Lite account will be activated on Paytm.
How to Transfer Money from UPI Lite to a Bank Account?
Below are thestepsto close your UPI Lite account andtransfer funds to your registeredbank account:
Step 1: Open your preferred UPI app registered with UPI Lite.
Step 2: Navigate to the ‘UPI Lite Settings’ and click on the ‘Deregister UPI Lite’ option.
Step 3: Enter your UPI PIN for confirmation.
In a few minutes, the remaining balance in your UPI Lite account will be transferred to the bank account from where you added money.
UPI Lite Limit Per Day
Within the UPI Lite system, you have the flexibility to spend amaximum of Rs. 4,000 on a daily basis while engaging in instant transactions with an upper limit fixed atRs. 500 for each transaction. Moreover, you can maintain a maximum balance of Rs. 2,000 daily in your UPI Lite account.
UPI Lite Supported Banks List
Here is a list ofbanks and financial institutions supporting UPI Lite’s mechanism in India as the remitter party:
| Sl.No. | Bank/Institution | Type |
| 1 | AU Small Finance Bank | Public bank |
| 2 | Axis Bank Limited | Private sector bank |
| 3 | Bank of Baroda | Public sector bank |
| 4 | Bank of India | Public sector bank |
| 5 | Canara Bank | Public sector bank |
| 6 | Central Bank Of India | Public sector bank |
| 7 | Cosmos Bank | Private sector bank |
| 8 | Equitas Bank | Public sector bank |
| 9 | Federal Bank | Private sector bank |
| 10 | Fincare Small Finance Bank Limited | Public sector bank |
| 11 | HDFC Bank Limited | Private sector bank |
| 12 | ICICI Bank | Private sector bank |
| 13 | Indian Bank | Public sector bank |
| 14 | Indian Overseas Bank | Public sector bank |
| 15 | Janata Sahakari Bank Limited Pune | Scheduled co-operative bank |
| 16 | Karnataka Bank | Private sector bank |
| 17 | Kotak Mahindra Bank | Private sector bank |
| 18 | Paytm Payments Bank | Public company |
| 19 | Punjab and Sind Bank | Public sector bank |
| 20 | Punjab National Bank | Public sector bank |
| 21 | Saraswat Bank | Multi-State co-operative bank |
| 22 | State Bank Of India | Public sector bank |
| 23 | Shamrao Vithal Co-operative Bank | Co-operative bank |
| 24 | Tamilnad Mercantile Bank | Private Sector bank |
| 25 | UCO Bank | Public Sector bank |
| 26 | Union Bank of India | Public sector bank |
| 27 | Utkarsh Small Finance Bank | Scheduled commercial bank |
| 28 | Yes Bank | Private sector bank |
Benefits of UPI Lite
Following are thebenefitsyou can avail by choosingUPI Lite as your payment method:
- With the use of UPI Lite, the success rate of transfer payments has improved.
- The single-factor authentication for payments less than Rs. 500 through UPI Lite has reduced the infrastructure load on Remitter Bank CBS.
- Payments initiated through UPI Lite are not recorded in a user’s passbook, offering an uncluttered bank statement.
- UPI Lite comes with a user-friendly interface, resulting in convenient transfer of funds.
UPI Lite vs UPI
Here are the key differences between UPI Lite and UPI:
| Point of Difference | UPI | UPI Lite |
| Product | UPI is a round-the-clock payment system that facilitates real-time transactions between two bank accounts. | UPI Lite is an on-device payment account facilitating funds transfer between one's UPI Lite account and a recipient's bank account. |
| Transaction Limit | The maximum amount one can transfer using UPI on a particular day is Rs. 1 lakh. | One can transfer a maximum amount of Rs. 4,000 on a particular day. |
| Number of Transactions | It allows a maximum limit of 20 transactions to be made by a user in 24 hours. | It comes with no limit on the number of transactions made in 24 hours. However, the limit per transaction is Rs. 500. |
| Fund Transfer | Money can not only be sent but also received through UPI. | Currently, only money can be sent but cannot be received. Any money received will be transferred to the user’s linked bank account. |
| PIN Requirement | To transfer funds via this payment system, the user has to input the 4-6 digit PIN. | Funds can be transferred without a PIN. |
| Record | The issuing bank updates the record of each transaction in the user's passbook. | Transactions made through this account are not recorded in the bank’s passbook. However, the user receives an SMS confirming the transaction status. |
A simpler and enhanced version of UPI, UPI Lite is a valuable addition to the digital payment ecosystem of India. Its user-friendly interface aims to improve the digital experience for both banks and account holders. Now that you know how to use UPI Lite, you can easily register and start using it for daily transactions.
Related Articles:
1. Frequently Asked Questions about UPI
2. UPI Transaction Charges
3. Income Tax On UPI Transactions
4. How To Do UPI Payment Without Internet
5. What is UPI ID? How to Create and Change UPI ID?
6. How To Increase UPI Transaction Limit In SBI?
