UPI Lite was launched in September 2022 to simplify the transaction process with UPI. It was introduced with the aim of making instant payments of small amounts and reducing traffic in banks.
Transactions through UPI are increasing continuously in India. For small transactions, the Reserve Bank of India launched UPI Lite in September 2022. Now RBI has given a big relief to UPI Lite users. Now users will get rid of the hassle of repeatedly putting money in their wallet. After the meeting of the Monetary Review Committee today, Reserve Bank Governor Shaktikanta Das announced that now the facility of auto replenishment will also be available in UPI Lite Wallet.
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Shaktikanta Das said, “In view of the large scale use of UPI Lite, it has now been proposed to bring it under the e-mandate framework and a new service has been introduced to automatically recharge the wallet of the customer when the UPI Lite wallet balance goes below the threshold limit.” This means that the user will not have to add money to the wallet again and again. As soon as the wallet balance goes below the minimum limit, money will be automatically credited to the wallet. This service will not start automatically, but the user will have to start it.
UPI Lite was launched
in September 2022 to simplify the transaction process with UPI. Transactions with UPI have increased in the last few years. UPI is also used by small to big vendors. About half of the total UPI transactions across the country are of Rs 200 and less value. Due to this, payments get stuck many times due to increased traffic. Apart from this, it also takes time to add PIN and follow other processes in UPI. Therefore, UPI Lite was introduced for payment of small amounts and to reduce traffic in banks.
Can make payments up to Rs 500
UPI Lite allows users to transact using an ‘on-device’ wallet, not a linked bank account. This means that you can do it as quickly as possible by just using the wallet, without going through the bank. In this, the NPCI Common Library (CL) app is used. In this, payments of less than Rs 500 can be made. Only up to Rs 500 can be paid at a time.
