The Reserve Bank of India (RBI) and NPCI introduced an inferior version of UPI called UPI Lite in September 2022. This simplified version of the UPI Payment System allows users to make small value transactions without facing failures due to bank processing and other reasons.
The original purpose is to ensure smooth transactions of small valued UPI payments. The transaction limit for UPI lite is ₹200 for each payment you make, unlike the regular UPI payment method which has a daily limit of ₹1 Lakh.
However, to use UPI Lite, the users will have to add money first into their account first for which the transaction limit is ₹4,000 per day. This amount can be added by making two transactions of ₹2,000 daily.
Who Will Get the Benefit of UPI Lite Most?
UPI Lite is the best payment option for users who make small transactions frequently. They will not be required to use PIN nor will their transaction be failed because of banks’ server failure.
Moreover, Lite users will have the option to close their accounts anytime and transfer their money from the Lite account to their bank accounts anytime they want without paying any fees.
Here are the Steps to Use UPI Lite on Different UPI Payment Apps:
- First launch GPay on your phone.
- Now, click on your profile pic placed in the top right corner.
- Next, select the ‘Pay Pin Free UPI Lite’ option.
- Follow the instructions that appear on the screen to add money to your account, for which the limit is ₹2,000.
- After adding the money you can make as many transactions as you want. The limit will be ₹200 for every payment executed without entering the PIN.
- First launch the PhonePe app.
- Tap on the UPI Lite option as you see it on the home screen.
- You can also find this option under ‘Payment Methods’ after clicking on your profile pic.
- Follow the instructions from the app to add money.
- The limit to add money is ₹2,000.
- After adding money you will be able to send up to ₹200 per transaction without entering the PIN.
- First launch the Paytm app.
- find this option ‘Introducing UPI Lite’ and click on it.
- Select your bank account that supports lite and link it.
- Now, add money to your lite account.
- Once you have added the money you can send payments up to ₹200 without entering the PIN.