What is UPI Lite?

UPI (Unified Payments Interface) has been a technological marvel in India. For those new, UPI is a mode of transacting money online between bank accounts easily. Developed by NPCI under the supervision of RBI, UPI has been disrupting the Indian digital finance field since 2016 with over 1000 crore worth of monthly transactions recorded in August ’23.

One of the major benefits is that most of the Indians have bank accounts today and are able to take care of their own money. Sending and receiving money cannot be easier. All you need is a mobile number linked to your bank account and a debit card and you are all set to transact. You can send and receive money via your mobile number henceforth. It has become so common that you will find a UPI QR code at every nook and corner of India today.

UPI is a project that is being actively developed by the NPCI. And one such feature is UPI lite. The usual process of transaction involves entering a 4/6 digit PIN to confirm a transfer. However, NPCI realized that it becomes a hassle when you have to transact several small amounts of transactions. Hence UPI lite is an on-device wallet that allows one to store Rs. 2000 of balance with a limit of Rs. 4000 in the wallet in 24 hours. The benefit is you can make transactions of up to Rs. 500 without entering the PIN number. Plus it works almost offline(debit works offline, credit works online) so it mimics…