A faster way to transact: Use UPI Lite for your small daily payments

UPI Lite allows users to load up to rupees 4000 a day to perform small-value transactions without the hassle of remembering pins.

What is UPI Lite?

The Reserve Bank of India (RBI) launched UPI Lite in September 2022. Designed by the National Payments Corporation of India (NPCI), UPI Lite acts as an on-device wallet for everyday small value transactions. Users can load up to Rs. 4000 daily with a onetime maximum top up of Rs. 2000. 

UPI Lite facilitates quicker transactions without users having to enter a PIN or facing bank server issues during peak hours. 

Also Read: UPI Payments Without Internet

Highlights

• UPI witnessed transactions worth 14.7 trillion Indian rupees as of June 2023.

• UPI Lite offers a pin-less way to send money

• The upper limit for UPI Lite has been raised to Rs 500 from Rs 200 by the RBI on August 10, 2023.

• You can load up to a maximum of Rs 2000 at a time and with a limit of Rs 4000 within 24 hours.

Also Watch: Why UPI Can Make India a Financial Superpower?

How do I set up UPI Lite on my Paytm?

UPI Lite can be set up on Google Pay, Paytm and many other service providers that support UPI. The following steps illustrate how to set up a UPI Lite account with the example of Paytm.

1. If you don't already have the Paytm app, visit the Google Play or App Store to download and install the app on your phone. 

2. Launch the app, and you will find yourself on the homepage.

3. Navigate to the option that says UPI Lite

4. Choose a bank account that is capable of supporting UPI Lite. Currently, it is supported by the following banks:

• State Bank of India

• HDFC Bank

• Canara Bank

• Axis Bank

• Kotak Mahindra Bank

• Indian Bank

• Punjab National Bank

• Paytm Payments Bank

• Utkarsh Small Finance Bank

• Union Bank of India

• Central Bank of India

5. Enter an amount that you wish to add to your UPI Lite account, keeping in mind the Rs 2000 upper limit. This will activate your UPI Lite account. 

6. Create an MPIN and validate it to create your UPI Lite account.

7. Your UPI Lite account is ready to make instant payments without PINs.

Read More: UPI Fraud

Differences between UPI Lite and UPI

• Unlike UPI, you do not enter a pin to send money via UPI Lite.

• UPI Lite onetime transaction limit is Rs 500, while that of UPI is Rs 2 lakh. 

• Currently, only 11 banks support UPI Lite, while UPI is supported by over 100 banks. 

• Unlike UPI transactions, you won't see UPI Lite payments history on your bank passbook. It will only show the amount added.

Conclusion

UPI Lite brings another revolution in India’s digital payment sphere. It helps ease the process of sending money by giving users a wallet-like experience that is fast and secure. If you haven’t tried UPI Lite yet, it’s time to get your hands on it now.

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