UPI (Unified Payments Interface) Lite
There has been a significant rise in the UPI-based online transactions over the last few years. According to National Payments Corporation of India (NPCI), over Rs.11 crore of transactions have been recorded in the month of September 2022. As per NPCI, three-fourths of the transactions are of smaller value due to which NPCI has introduced UPI Lite, an offline payment mode for smaller values. Read on to know more details about UPI Lite.
What is UPI Lite?
UPI Lite is a feature enabled by NPCI, which is also known as ‘on-device wallet’. This is an efficient mode of offline payment that allows the user to perform small-value transactions without using PIN. This is available on BHIM app and can be downloaded on devices with both IOS and Android operating systems.
Benefits of Using UPI Lite Over Traditional UPI
UPI Lite is a simplified version of UPI that makes small payments easier and faster. Here's how it is better than regular UPI:
Works Without Internet
You can make payments using UPI Lite even when your phone has no internet connection.
Faster Payments
No need to enter UPI PIN for each transaction. Just tap and pay — it’s quick and simple.
Less Load on Banks
Since payments are processed in batches, it reduces pressure on banking servers and avoids delays.
No SMS or OTP Needed
You don’t need to wait for OTP or use SMS for verification, making the process smoother.
Easy for Daily Use
You can load up to ₹2,000 in UPI Lite and send up to ₹500 per transaction — great for tea shops, groceries, etc.
Safe to Use
You can activate UPI Lite easily through the BHIM app or bank apps in just a few steps.
UPI Lite uses your phone’s lock or fingerprint for security. No UPI PIN is shared every time.
Easy to Set Up
You can activate UPI Lite easily through the BHIM app or bank apps in just a few steps.
How to Set Up UPI Lite on the BHIM App
The steps to enable UPI Lite on BHIM application are as follows:
- Install BHIM app on your mobile device
- Enter your PIN to login
- Add your bank account for transactions through UPI
- Find ‘UPI Lite’ option and click on ‘enable now’ option
- Enter the amount you want to transfer to your on-device wallet from your bank account
- Enter the UPI PIN and transfer the amount
- Once the amount is transferred your UPI Lite eWallet gets activated
Key Highlights of UPI Lite
The following is the list of important features of UPI Lite:
Features | Details |
How it works? | Add money to the wallet in the app from the bank to make payment through UPI Lite. |
Who can use it? | Users of the following bank can access UPI Lite through BHIM app: State Bank of India, HDFC Bank, Canara Bank, Kotak Mahindra Bank, Indian Bank, Punjab National Bank, Utkarsh Small Finance Bank |
What is the transaction limit? | Upper limit: Rs.200 (No PIN required for transactions below Rs.200) |
Total UPI Lite balance limit on device wallet? | Rs.2,000 |
What type of transaction option is available? | Only debit option is available with UPI Lite. Refunds and credits go directly to the linked bank account. |
Is it an offline or an online mode of transaction? | Debit payments can be made offline. Credit into the account requires users to be online. |
How to check transaction history? | SMS consisting daily UPI Lite transaction history is sent to the customer on their registered mobile number. |
Difference Between UPI Lite and UPI
UPI Lite differs from UPI in various ways. Here are some of the significant differences between UPI Lite and UPI:
UPI Lite | UPI |
Allows users to make real-time transactions in small amounts | Allows users to transfer funds between two banks in real time 24*7 |
The upper limit is Rs.200 | The upper limit is Rs.2 lakh |
No PIN required | PIN is mandatory to make transactions |
Allows only to send money | Users can both send and receive money |
This feature is enabled for only eight banks | This is applicable for more than 100 banks |
Enabled on BHIM app | Enabled for various UPI applications such as Paytm, Google Pay, PhonePe and others |
Transaction history is sent via SMS | Users can check from the app under ‘Transaction history’ option on the home screen |
How to Send Money via UPI Lite on the BHIM App
The following are the steps to transfer money through UPI Lite:
- Open BHIM app
- Perform fingerprint authentication
- Scan the QR code
- Enter the amount you want to transfer
- If you want, add comments or remarks
- Click on confirm to send
A page consisting of amount transferred, bank details, and remark, appears that confirms payment made was successful.
Important Points to Know About UPI Lite
The following are the points that every user must remember before using UPI Lite:
- UPI Lite cannot be enabled for multiple accounts
- All the accounts linked with your UPI ID may not be applicable for UPI Lite
- UPI Lite balance does not yield interest
- Top up transactions can be made to credit funds in your UPI Lite eWallet from your linked bank account
- Once the UPI Lite is disabled, the balance amount or any refunds will get transferred to your bank account
- UPI PIN not required to carry out transaction through UPI Lite
- Any issue regarding UPI Lite such an enabling or disabling app, top up and others, would be dealt with by the issuing bank .
FAQs on UPI Lite
- Who launched UPI Lite?
The Reserve Bank of India has launched UPI Lite on BHIM app to make small amount transactions easier and simple.
- How many transactions can I make through UPI Lite?
You can make unlimited transactions through UPI Lite without internet access and PIN.
- Can I check my transaction history for UPI Lite in my bank passbook?
No, UPI Lite transactions will not appear in the bank passbook. Users get daily updates of their UPI Lite transaction via SMS on their registered mobile number.
- Does UPI Lite charge its customers for making transactions?
No, UPI Lite is free of cost and users do not need to pay extra for making any money transfer through this application.
- Can I start using UPI Lite immediately after enabling?
Yes, you can instantly transfer funds after enabling the UPI Lite on BHIM applications on your smartphone.
- If my UPI Lite is disabled, then where can I check my transaction status?
If you have disabled your UPI Lite, then all refunds or transactions will appear in your linked bank account. Nothing will be visible in the application anymore.
- How does UPI Lite authenticate users before transaction?
UPI Lite requires biometric or fingerprint authentication before accessing the application. As it does not involve entering PIN, the fingerprint validation authenticates users before every transaction.
News on UPI Lite
UPI Lite launched by the Reserve Bank of India to initiate low-value transactions
National Payments Corporation of India enabled UPI Lite to enable low-value transactions without using a PIN. Customers can use this on-device wallet by adding money to the platform, and without linking to the bank account. Instant transactions of up to Rs.200 can be done, and a maximum amount of Rs.2000 can be added twice to UPI Lite. Users can also transfer the amount to the bank without paying any additional charges.
Users can download Paytm applications on their Android or iOS devices to set up UPI Lite in Paytm. Users need to click on the ‘Profile’ button on the home page, select ‘UPI & Payment Settings’ under the ‘Other Settings’ option, and select the ‘UPI Lite’ option. After selecting the bank, the user needs to specify the amount on the ‘Add Money to Activate UPI Lite’ page. After validating MPIN, the UPI Lite account will be created, and users can make payments instantly.
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