NPCI now wants people to make small value transactions through UPI offline. If you want to store money on your phone or tablet, you can use the “UPI lite – On-Device wallet.” With UPI lite, you can scan any QR code and make a payment without having to be online.
UPI Lite is an on-device wallet just like ones found on popular digital payment apps like Paytm, Freecharge, MobiKwik, and more. The goal of the service is to lessen the strain on the UPI infrastructure and avoid service downtime.
People in India made more than 5 billion UPI transactions in March, according to new data from India’s
National Payments Corporation, which runs the service (NPCI).
What is the Transaction Limit in UPI Lite?
According to NPCI’s estimates, 75% of the total retail transactions in the country continue to be below Rs 100 in value. On UPI, almost 50% of the total offline transaction is up to Rs 200 in value. This is why NPCI will only allow offline transactions upto Rs 200.
When UPI Lite will be launched?
NPCI has not revealed any specific date for the launch of UPI Lite. The Reserve Bank of India’s (RBI) specialised division says that UPI Lite will be launched as a pilot with a number of banks and app providers first, and then the full-scale commercial launch will be announced after the banks and app providers have had time to get used to the system.
During the first phase, UPI Lite will only process debit offline and credit transactions online. At a later point, UPI Lite will process the transactions in full offline mode, which means debit and credit both offline,
A user of the UPI app will have the option of enabling UPI Lite. After enabling UPI Lite, the user can transfer funds from their bank account to UPI Lite.
The UPI Lite will function similarly to traditional mobile wallets. Users will not be needed to submit a PIN while using UPI Lite to conduct transactions. NPCI does recommend, however, that users establish a device authentication mechanism or passcode during transitions. Additionally, each time a user makes a transaction, the remaining balance in their UPI Lite wallet will be displayed.