Explained: What is UPI Lite and how it can help you make digital payments without internet

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The Covid-19 epidemic has forced all of us to turn to digital payments because they are fast, non-communicative and easy. Although there are various ways to make digital payments, it is one of the most widely used methods in our country UPI (Unified Payment Interface). There are several platforms that can be used for UPI based payments like Google Pay, PhonePe, Paytm and others. However, all these platforms require an active internet connection to make a payment.
So if you ever get stuck in a situation where you have a weak or no internet connection, you have the option of using only 123Pay or USSD-based UPI services for digital transactions. Since none of these methods support QR code based payments, making a transaction can be a tedious task. To help users in such situations, the National Payments Commission of India (NPCI) has launched a new UPI service. UPI Lite. What a surprise, here is your answer.
What is UPI Lite?
UPI Lite is an on-device wallet feature found in popular digital payment apps such as Paytm, Freecharge, MobiKwik and others. The feature will allow you to accelerate closer to real-time low-cost payments without an Internet connection with the money added to the wallet.
In the first step, UPI Lite will process online transactions in near offline mode i.e. debit offline and credit online and next time, UPI Lite will process both offline mode i.e. offline debit and credit transactions.
What is the transaction limit on UPI Lite?
According to NPCI, only debit from wallet balance will be allowed and all credits (including refunds etc.) in UPI Lite will be processed online in your bank account maintained in the bank’s main banking system.
The upper limit of a UPI Lite payment transaction will be Rs.200. The total UPI light balance for Walter will be Rs 2,000 at any one time. You can only add funds to UPI Lite Wallet in Online Mode using Additional Factor Authentication (AFA) or UPI AutoPay that you have registered with AFA in Online Mode.
When will the UPI light be on?
NPCI has not announced a specific date for the UPI launch Lights. According to a circular issued by the Reserve Bank of India (RBI) specialized department, UPI Lite will initially be launched as a pilot with multiple banks and app providers and after receiving appropriate benefits, a full scale commercial launch with compliance timeline. On-boarding will be announced for issuers and app providers.




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