The Reserve Bank of India has increased the limit of UPI Lite Wallet from Rs 2000 to Rs 5000. Apart from this, the limit of single transaction has been increased to Rs 1000.
The Reserve Bank of India has announced to increase the wallet limit for UPI Lite from Rs 2,000 to Rs 5,000, promoting the instant payment system through mobile phones. Apart from this, the limit per transaction has also been increased from Rs 500 to Rs 1,000. According to RBI, now a maximum of Rs 1,000 can be sent to a person at a time through UPI Lite. The Reserve Bank circular states, “The increased limit for UPI Lite will be Rs 1,000 per transaction and the total limit at any time will be Rs 5,000.”
Supports offline transactions
For UPI payments, the user needs a UPI PIN. UPI Lite allows smartphone users to make low-value transactions without a UPI PIN. UPI Lite is a customer-friendly approach that does not rely on the bank’s core banking system in real time. UPI Lite supports offline transactions for person-to-person payments, person-to-merchant payments and small merchant payments. With UPI Lite, users get the facility of offline debit for payments, but it is necessary to be online for credit.
Most merchants use QR code
Most UPI merchant transactions use static or dynamic QR codes, which require an online message to reach the recipient to complete the payment. The decision comes at a time when the RBI is pilot testing technologies that enable retail digital payments in situations where internet connectivity is low or not available.
RBI had talked about adjusting the limit
Last time in October, the RBI had expressed its intention to adjust these UPI payment limits as part of its monetary policy. In its statement on developmental and regulatory policies, the central bank had said, “The framework issued by the Reserve Bank for facilitating small value payments in offline digital mode, under which UPI Lite has been enabled, will be suitably modified.”