UPI Lite service is launched by Paytm on its application for all users. This makes it India’s very first digital payments app to launch this unique service powered by National Payments Corporations of India. So, What is this feature and how can you activate it?
UPI Lite was Launched by NPCI and Introduced by Paytm
UPI Lite was offered by NPCI recently to eradicate the transactional limit on UPI payments which ultimately makes this payment system more convenient. The Reserve Bank of India launched this payment mode in September 2022.
Around, “50 percent of the total UPI transactions around the country are of the value of Rs 200 and less. However, even with a low value of transactions, the UPI system gets overwhelmed, increasing the transaction traffic across banks, and also many times payments get stuck. Additionally, UPI also takes time as users have to add pins and wait for the bank to initiate payments,” said a circular issued by NPCI in May.
So, now you know that UPI Lite was introduced by NPCI to ease the workload on banks and their servers. “While the BHIM app has already started allowing UPI Lite transactions, recently Paytm became one of the first digital payments apps to start UPI Lite on its platform.”
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What is UPI Lite Exactly?
UPI Lite is an on-device wallet payment system launched by NPCI for all UPI users to add a large amount of money once in the wallet to make multiple low-value payments. Here the money will be deducted from the wallet and not from the linked bank account, this ability will get all the users relief from the problem of daily UPI transaction limits. You can make as many transactions as you want of small amounts and the system will not show any quantitative restrictions. Hence, if you are a Paytm user, then you can add a decent amount of money at once, using the UPI Lite feature in Paytm Wallet to execute as many transactions as you want.
“Once the feature is set up, the UPI Lite wallet allows a user to do instant transactions of up to Rs 200, instantly without adding UPI PIN or waiting for banks to confirm transactions. Notably, users can add a maximum of Rs 2,000 can twice a day to UPI Lite, making the cumulative daily usage up to Rs 4,000,” mentioned by India Today.