UPI Lite allows users to store money directly on their device just like you carry money in your pocket. Users can now keep a balance of up to Rs 5000 in UPI Lite wallet. This limit was earlier only Rs 2000. RBI has increased the payment limit on UPI123Pay to Rs 10 thousand which was earlier only Rs 5 thousand.
The Reserve Bank (RBI) has increased the limit of digital payment solution UPI Lite. Now it has become more convenient to use it. Let us know what is UPI Lite, how much its limit has increased and who will benefit from the increase in the limit.
What is UPI Lite?
UPI Lite is an online wallet in the UPI app. It has been introduced by the National Payment Corporation of India (NPCI) with the facility of making payments without entering the PIN. UPI Lite payment system actually works without using the banking infrastructure. Most people use it to purchase small amounts. Such as milk, fruits or vegetables.
How UPI Lite works
UPI Lite allows users to store money directly on their device, just like you carry money in your pocket. This makes payments very easy. Also, there is no need to access the bank server for every transaction. This makes digital payments convenient even for feature phone users. Also, transactions of small amounts become easy for those using UPI Lite wallet.
5 thousand balance in UPI Lite wallet
Users can now keep a balance of up to Rs 5,000 in UPI Lite Wallet. Earlier this limit was only Rs 2,000. Earlier the limit per transaction was also very low, only Rs 100. But now this has also been increased to Rs 500. You can refill the wallet from the linked bank account when the balance is over. This will also prevent the possibility of misuse of your wallet.
Payment limit increased on UPI123Pay
RBI has increased the payment limit on UPI123Pay to Rs 10,000, which was earlier only Rs 5,000. This will especially benefit those who use feature phones instead of smartphones. These people can make digital payments even if there is no internet connectivity. They have to enter a 4-6 digit transaction PIN for payment.
How can you make payment using UPI123Pay
UPI 123Pay has been designed keeping in mind the 40 crore users of India who use feature phones. Through this, they can make digital payments without a smartphone or internet connection. Users can set up UPI 123Pay by dialing *99#, selecting their bank, entering debit card details and creating a UPI PIN. This allows secure transactions even without internet access.