The Reserve Bank of India (RBI) has raised the wallet limit for UPI Lite from ₹2,000 to ₹5,000 to encourage the use of the instant payment system on mobile phones.
Additionally, the transaction limit per use has been increased from ₹500 to ₹1,000. This means users can now send up to ₹1,000 in a single transaction using UPI Lite.
An RBI circular stated: “The increased limit for UPI Lite will be ₹1,000 per transaction, and the total limit at any time will be ₹5,000.”
Features of UPI Lite
UPI Lite is designed for small-value transactions and does not require a UPI PIN, making it a convenient option for smartphone users.
Unlike regular UPI, UPI Lite operates offline, meaning it does not rely on the bank’s core banking system for transactions.
UPI Lite supports various payments, such as:
1) Person-to-person transfers
2) Person-to-merchant payments
3) Small merchant transactions
While UPI Lite enables offline debit payments, users need an internet connection for crediting funds to their wallets.
Most UPI merchant transactions use QR codes (static or dynamic), which require online connectivity to process payments.
RBI’s Vision for UPI Lite
The RBI’s decision to increase these limits aligns with its efforts to expand digital payment accessibility, especially in areas with poor or no internet connectivity.
In October, as part of its monetary policy discussions, the RBI highlighted plans to revise UPI Lite’s payment framework.
The focus is on enabling small-value offline payments and ensuring the system remains adaptable to evolving user needs.
