RBI’s New UPI Lite Rules: A Game-Changer for Payments: What’s New with UPI in 2024?
The Unified Payments Interface (UPI) is undergoing a significant transformation, making everyday transactions faster and more convenient. Here’s everything you need to know about the new UPI Lite feature and how it changes the way you make payments!
What is UPI Lite?
UPI aims to streamline small-value digital payments for offline transactions. UPI Lite enables users to complete low-value purchases without requiring internet connectivity, thereby enhancing transaction efficiency.
UPI Lite has been specifically created to facilitate quick, small-value offline transactions, which constitute the majority of retail payments throughout India.
Users can utilise the rechargeable balance for small purchases at Kirana stores, pharmacies, restaurants, shops, fuel retail outlets and various other establishments.
An additional benefit is that these UPI LITE transactions remain separate from the bank passbook, ensuring cleaner record-keeping.
Key Benefits of UPI Lite
- PIN-Free Transactions: You can now make small payments effortlessly without entering a password.
- Seamless Everyday Use: Ideal for expenses like fuel, groceries, and daily purchases.
- Reduced Bank Transactions: Payments are directly processed from the UPI Lite wallet, keeping your bank account clutter-free.
How to Set Up UPI Lite
- Activate UPI Lite: Open apps like Paytm, PhonePe, or Google Pay.
- Choose UPI Lite: Select the option, provide the required details, and complete verification.
- Add Funds: Load up to ₹5,000 into your UPI Lite wallet.
- Make Payments: Scan the QR code and approve the payment—no PIN needed!
How to Link Your Bank Account to UPI
- Download a UPI App: Install apps such as Google Pay, PhonePe, Paytm, or BHIM.
- Register Your Mobile Number: Ensure your number is linked to your bank account.
- Create a UPI ID: Set a unique ID (e.g., yourname@bank).
- Link Bank Account: Choose your bank and verify your details.
- Set a PIN: Use your debit card to create a secure UPI PIN.
RBI’s New UPI Lite Rules
The Reserve Bank of India has introduced significant updates:
- Wallet Limit: The UPI Lite wallet limit is now ₹5,000.
- Transaction Limit: You can make transactions up to ₹1,000 without entering a PIN.
- Offline Mode: Payments can be made without an internet connection for added convenience.
This upgrade simplifies digital payments, making them quicker and more accessible for millions of users across India. Ready to switch to UPI Lite and experience effortless transactions?
