FP trendSeptember 23, 2022 18:44:34 IST
To make low-value UPI payments faster and easier for users, the National Payments Corporation of India (NPCI) launched UPI Lite on Tuesday, September 20, 2022 at the Global Fintech Fest. UPI Lite was launched in Mumbai by Reserve Bank of India (RBI) Governor Shaktikanta Das in the presence of NPCI Advisor Nandan Nilekani.
Specifically, it is a feature developed by NPCI to simplify small value transactions by creating a local wallet on the user’s device that will not require any UPI PIN to make payments. This happened a few days after NPCI announced a Lite version of UPI.
With the launch of UPI Lite, while it is currently enabled for users on the BHIM app, the feature will soon be available for other popular UPI platforms such as PhonePe, Google Pay and Paytm.
To learn more about the UPI Lite concept and how it works, read below for details.
What is UPI Lite?
A feature that creates a local wallet on your smartphone, which helps you add funds from your main savings account for various small transactions. Being an “on-device” wallet, it will not need the Internet to transact.
Although there is a limit on the amount for wallet transactions, you can use UPI Lite to make payments with a value less than Rs 200. That said, the maximum balance for the wallet is Rs 2,000. On top of that, transactions made by UPI Lite will not require the UPI PIN, which makes it convenient for quick payments.
Meanwhile, while the wallet currently only allows the amount to be debited, all credits including refunds will be deposited directly into your main account. Although all major banks including State Bank of India, HDFC Bank, Punjab National Bank, Kotak Mahindra Bank, Union Bank of India, Indian Bank, and Utkarsh Small Finance Bank are active with the feature, more banks are expected to identify it in the future. .
How to use UPI Lite?
Now that we know about UPI LITE, here’s how you can use it on your smartphone.
First, download the latest version of NPCI’s BHIM app from the Google Play Store or the Apple App Store.
Log in and configure your BHIM app with your UPI-enabled bank account.
On the main screen, find the UPI Lite option and tap to enable it.
Then, review the information and details displayed and agree to the terms and conditions.
Finally, click on the “Enable Now” option.
Also, select the bank account for portfolio funding as and when required.
Add money to your wallet. The configuration is finally completed.