The Reserve Bank of India (RBI) has taken a significant step to enhance the utility of UPI Lite wallet by raising the offline transaction limit from Rs 200 to Rs 500.
This decision was formally announced on Thursday, marking a pivotal moment in facilitating digital payments.
It’s noteworthy that even with this revision, UPI Lite continues to enable transactions up to a cumulative value of Rs 2,000 across any payment platform.
The introduction of UPI Lite was aimed at streamlining UPI transactions and it has particularly found resonance in regions grappling with network issues or weak signals.
RBI’s Circular and Progressive Approach
In a strategic move, the RBI circulated an official communication to amend the scope of small amount digital payments through offline means.
The circular stated, “The cap on offline payment transactions has been elevated to Rs 500.”
UPI Lite, which made its debut in September 2022 with the goal of simplifying UPI transactions, was the beneficiary of this regulatory enhancement.
Originally limited to transactions up to Rs 200, UPI Lite now offers users the convenience of conducting transactions of higher value offline.
Rapid Ascendance and Adoption
The ascent of UPI Lite has been nothing short of remarkable, capturing the attention of basic mobile phone users nationwide.
The platform has quickly become a favorite choice for conducting transactions, with the current monthly transaction volume exceeding one crore.
Aiming to further boost UPI Lite’s usage, the RBI put forth a proposal in early August to enable offline transactions via Near Field Communication (NFC) technology.
Notably, NFC-enabled transactions do not require PIN verification, adding a layer of ease to the process.
The RBI’s decision to amplify the offline transaction limit for UPI Lite to Rs 500 underscores its commitment to fostering digital inclusivity and convenience across the financial landscape.