To make this system more robust, more user friendly and more efficient, RBI introduced UPI Lite in September 2022. UPI payment system has already revolutionized the way we transfer the money, purchase any product or pay bills . This is the reason that it has witnessed so much growth in terms of number of transactions as well as the volume of transaction. The vision behind the introduction of UPI Lite is to make UPI system more financially inclusive. Lite is designed for small value transaction. Here are some key difference between UPI and UPI Lite.
|Nature||This is 24×7 real-time payment system where transaction happen between two bank accounts||This is on-device wallet system where transaction happen between one bank account meaning sender’s bank account server is not involved in this transaction|
|Security||Sender need to put 4 or 6 PIN to do the transaction||No need to enter PIN to do the transaction|
|Limit||Maximum Rs 2 lakh per day and 20 transaction per day||Maximum Rs 500 per transaction (Limit increased by RBI, earlier it was Rs 200) and Rs 4000 per day|
|Uses||You can send and receive both using UPI||You can only send money using UPI Lite and money will get credited to receiver’s bank account|
|Internet||Internet is required to authenticate the transaction||As it is on-device wallet, Internet is required for the transaction.|
|Bank Server||Bank server’s are involved for every transaction to happen in UPI||Bank server’s are not involved to fetch the status of sender’s bank account. So it reduces the server load.|
|Success Rate||High||More than UPI|
|Availability||More than 300 banks and all major payments app||It is limited but more banks are onboarding|
Benefits of UPI LITE
- Enhanced efficacy in UPI transactions, high success rate.
- Reduced burden on the Remitter Bank CBS infrastructure.
- Streamlined Passbook experience for users.
- Seamless one-click, single-factor authentication for UPI transactions under the ₹ 500 threshold.
Who developed UPI Lite?
It is developed by National Payments Corporation of India (NPCI).
Can we do international transactions with UPI Lite?
No, Lite is primarily designed for small value domestic transactions within India.
How much money you carry in UPI Lite account?
Maximum balance which can be made available in LITE account at any time: ₹2,000 and you can top-up your account two time in a day with max Rs 2000.
If user change his Mobile Device then what will happen to the UPI Lite Balance?
In this case user has to disable his UPI Lite account on Old mobile and Enable same Lite account on his/her new Mobile. This will transfer the balance of old mobile to new Mobile.
what will happen to the UPI Lite Balance if the device got lost/stolen?
In that case user will has to contact his/her bank account for refund in bank account. Lite balance cannot be transferred from old to new mobile device unless Lite account is disabled from old mobile
More such Articles: Click Here