Check out the increased UPI transaction limit, learn about using UPI Lite for payments, and more.

Reserve Bank of India Proposes UPI Lite Transaction Limit Increase

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On August 10, the Reserve Bank of India (RBI) announced its intention to enhance the transaction limit of UPI Lite, aiming to simplify and expand digital payment options for users across the country. This move is expected to provide greater convenience and accessibility to users, facilitating small-value transactions through UPI Lite.

Proposed Increase in Transaction Limits
The RBI’s proposal entails raising the per transaction payment limit for UPI Lite in offline mode from Rs 200 to Rs 500. This increase aims to address users’ needs and encourage more individuals to adopt digital payment methods. The step is a significant stride towards deepening the penetration of digital payments within India.

Current Limits and Proposed Changes
Presently, the RBI has set a transaction limit of Rs 200 per transaction, coupled with an overall limit of Rs 2,000 per payment instrument for small-value offline digital payments, encompassing both National Common Mobility Card (NCMC) and UPI Lite. With the impending change, the individual transaction limit will be raised to Rs 500, while the daily transaction limit will continue to be Rs 2,000. The retention of the daily limit is a preventive measure to ensure the security of transactions, maintaining the requirement for two-factor authentication.

RBI Governor’s Statement
RBI Governor Shaktikanta Das emphasized the significance of enhancing digital payment experiences through new technologies. He asserted that the elevation of the transaction limit for small-value digital payments within UPI Lite, combined with other initiatives, would lead to a broader adoption of digital payments in the country.

What is UPI Lite?

UPI Lite, introduced by the National Payments Corporation of India (NPCI) and RBI in September 2022, serves as a simplified iteration of the original UPI payment system. Its primary objective is to facilitate seamless and hassle-free small-value transactions, mitigating the challenges users sometimes face during regular UPI transactions.

Elimination of UPI PIN Requirement
To achieve this, UPI Lite omits the requirement to enter a UPI PIN during transactions, especially for small-value payments. This absence of two-factor authentication expedites the transaction process, providing a faster, more dependable, and contactless mode of payment for everyday transactions, transit payments, and more.

Using UPI Lite

To utilize UPI Lite, users can access it through a variety of UPI-enabled payment apps such as Paytm, PhonePe, and Gpay. Activation involves navigating to the app’s settings, locating the UPI Lite option, and enabling the feature.

Steps to Use

1.Open the UPI Lite-enabled app.
2.Set up your UPI Lite profile and link your bank account.
3.Load funds into your UPI Lite wallet.
4.To initiate a payment, follow the same procedure as regular UPI payments.
5.Scan the recipient’s QR code or input their mobile number.
6.Specify the payment amount.
7.Opt for payment using UPI Lite.

Upcoming UPI Features

The RBI’s endeavors extend beyond just increasing UPI Lite transaction limits. It also plans to introduce innovative features to enhance the overall UPI experience, focusing on user convenience and accessibility.

Offline Payments via NFC
One of these features involves enabling offline payments through near-field communication (NFC) technology using UPI Lite. This advancement will empower users to perform digital payments even in areas with limited or no internet connectivity.

Conversational Payments
“Conversational Payments” is another noteworthy feature in the pipeline. This system enables users to conduct payments through AI-powered conversations, leveraging platforms like online messaging or chat applications. This innovation aims to streamline and simplify the payment process, making it more efficient and user-friendly.

Language Support
Initially, “Conversational Payments” will be available in Hindi and English, with future plans to expand to other Indian languages. The RBI will communicate instructions to the National Payments Corporation of India (NPCI) for the gradual rollout of this feature, promoting a more seamless and diverse digital payment experience for users across India.

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