What is UPI Lite? Send Money without UPI PIN

UPI Lite is recent addition to the UPI Payment System which provides hassle free transaction through UPI apps especially for low value transaction.

UPI in a very little time has evolved and dominating the Indian Digital Payment market with superior share. The reason for the enormous growth is the simplicity of the application and user interface.

But, to make the UPI transaction more convenient NPCI have introduced the UPI Lite, through which you can send money without the UPI PIN for smaller amount transaction.

We in this article providing the features of the UPI Lite, read

What is UPI Lite?

UPI Lite is a digital wallet from which you can send money to any UPI ID, QR Code, Account Number without the involvement of your bank.

But unlike other digital wallets available in the market the payment from the Lite wallet does not require any PIN or Password for Payment (Below Rs.500).

UPI Lite can be availed through the UPI Apps Ex. PhonePe, GPay, Paytm, etc.

Who can Avail UPI Lite?

The customer should have a following eligibility criteria can avail the UPI Lite feature.

• A customer should have a Bank Account.
• Customer should have UPI App installed in his Phone and it should be UPI Lite Enabled App.
• The customer should have enabled the transaction facility enabled through UPI Lite. As it requires UPI PIN for enabling UPI Lite for the first time.
  

What are the APPs providing UPI Lite Facility?

At present there are Five Apps that are providing UPI Lite facility to the consumers, and they are.

1. PhonePe
2. GPay
3. Paytm
4. BHIM
5. Cent UPI (CBI)

The NPCI is planning to provide the Lite services through all the UPI Apps. But the implementation will be through the phased manner.

Payment Limits in UPI Lite

As said earlier, the UPI Lite is a digital wallet you can save your money for smaller value transaction. Thus, there are limitation with the wallet for transaction and funding limits which is as given below.

• The maximum transaction limit for UPI Lite is Rs. 500.
• Total Balance in UPI Lite cannot be more than Rs. 2000.
• Transaction with the UPI Lite wallet is limited to Rs. 4000 per day. Thus you will not be able to make payment beyond Rs. 4000 from the wallet per day.

How to Enable UPI Lite Feature

Follow the below steps to enable UPI Lite facility.

1. Install the UPI Lite service enabled APP from the list provided earlier.
2. Enable the UPI Facility for the bank account with necessary authentication.
3. Click on the UPI Lite Tab on the home page of the app.
4. Accept terms and conditions on the next page.
5. Create an account by selecting your UPI linked bank account and making a first-time store value of INR 2000 (maximum limit permitted).
6. Approve the transaction with the UPI PIN when prompted.
7. Thus, you successfully created a UPI Lite Account. And you can start using the wallet and make the top up to the wallet from the bank account.

Benefits of UPI Lite

• The transaction happens in a short time as UPI Lite does not involves the CBS of the Bank.
• Simpler authentication for payment for low value transaction enhances the user experience.
• This will reduce the number of transactions done with the bank account and avoid clumsy statement.
• In recent times the banks are imposing limitations on the number of transactions. Thus, using UPI Lite will help you avoid the transaction charges from the banks.
• UPI Lite can also be used for payment when there is no network. But you might need to enable near field communication of your mobile phone for processing of transactions.

Important Features

• Customer can only create one UPI Lite wallet for only one account in an app. But one can create multiple UPI Lite wallet for the same account through different apps.
• If one wants to create a Lite wallet for the different account, he first has to disable the existing UPI Lite wallet. Then he can create a UPI Lite wallet for the different account in the same app.
• You can disable the UPI Lite feature at any time you want. If you disable your wallet, the amount in the wallet will be transferred to the operative account.
• The UPI Lite wallet is limited to your mobile phone. Thus, if you want to change your mobile phone, you have to first disable the UPI Lite in your present mobile phone.
• If you lose your mobile phone, you should give a request to your bank for refund of amount in the wallet. And the bank upon verifying the details will process your refund request.

Conclusion

UPI Lite is another option which provides customer friendly transaction facility for low value transaction without compromising the security.

It is still in the earlier stages but is well suited for the new generation who uses UPI for even penny transactions. This will prevent the whole lot of transaction in the bank account and keeping it clean for easy monitoring.