UPI Lite: Reserve Bank of India i.e. RBI has given a big gift to UPI Lite users. RBI has increased the transaction limit to Rs 1,000 per transaction and the total limit to Rs 5,000. RBI said that the maximum transaction limit for UPI Lite has been increased from Rs 500 to Rs 1,000 per transaction. Also, the total limit has been increased from Rs 2,000 to Rs 5,000. RBI clarified here that the utilized limit can be replenished only in online mode with Additional Factor Authentication (AFA).
increased limit
“The enhanced limit for UPI Lite will be Rs 1,000 per transaction and the aggregate limit will be Rs 5,000. The utilized limit can be replenished with AFA in online mode only,” RBI said in a statement. After the MPC meeting held on October 9, 2024, RBI has revealed changes in the transaction limits for UPI 123Pay and UPI Lite. The per transaction limit for UPI 123Pay has been increased from Rs 5,000 to Rs 10,000 and the UPI Lite wallet limit has been increased from Rs 2,000 to Rs 5,000.
Offline digital transactions will increase
The UPI Lite wallet provides users with a convenient way to conduct small value transactions without the need for a UPI PIN. Currently, users have to manually recharge their wallet balance from their bank account to make payments. However, the new auto-top-up feature, developed by the National Payments Corporation of India (NPCI), aims to simplify the process and eliminate the need for manual recharge. The increase in UPI Lite wallet limit is expected to increase low value offline digital transactions. UPI is operating outside India in many countries including Sri Lanka, Mauritius, France, UAE, Singapore, Bhutan and Nepal. The international arm of the National Payments Corporation of India (NIPL) is in talks with about 20 countries in Africa and South America to set up a UPI-like payment system.
