What is UPI Lite: 2025 Transaction Limit Per Day, Supported Banks, How to Transfer Money?

Updated on: Sep 10th, 2025

9 min read

UPI Lite is a user-friendly payment solution by NPCI and RBI, designed for seamless, PIN-free transactions up to ₹1,000. Ideal for everyday purchases, UPI Lite ensures accessibility, offline facility with UPI Lite X, enhancing India's digital payment ecosystem. Let’s understand what is UPI Lite, how to use it, including supported banks, limits, and benefits, in this comprehensive guide.

What is UPI Lite?

UPI Lite is a payment solution enabled by a collaboration between the National Payments Corporation of India (NPCI) and the Reserve Bank of India (RBI). Introduced in 2022, its purpose is to cater to the needs of users involved in everyday transactions. UPI Lite is a simpler alternative to the UPI. The facility is designed for low-cost transactions of up to ₹1,000, eliminating the need for a PIN.

UPI Lite operates based on the existing UPI ecosystem protocols, designed for mobile phones, and offers a user-friendly approach to facilitate small-value transactions.

UPI Lite Limit Per Day in 2025

Within the UPI Lite system, you have the flexibility to spend a maximum of ₹10,000 per day on instant transactions, with an upper limit of ₹1,000 per transaction. Moreover, you can maintain a maximum balance of ₹5,000 in your UPI Lite wallet at a given time.

What is UPI Lite X?

UPI Lite X is an enhanced version of the UPI Lite payment system, launched by the RBI, that enables customers to conduct offline transactions without requiring an active internet connection or mobile network. By reducing dependency on network availability, customers can make payments directly from a wallet stored on their device, eliminating the need for bank server communication during each transaction and delivering faster and more reliable payments.

This app is currently available through the BHIM application, and plans are in place for more expansive adoption by other banks and payment apps.

UPI Lite X Limit

UPI Lite X has transaction limits for security and efficiency. Each payment can be up to ₹500 per transaction, and the daily transaction limit would be ₹2,000. This limit was designed to encourage people to use this app for small-value transactions, while minimising the risk associated with offline payments.

Key Features of UPI Lite

UPI Lite enables individuals to initiate payments of up to ₹1,000 per transaction on their preferred online payments app without requiring the UPI PIN. Overall, a total transaction of ₹10,000 is allowed in 24 hours.
Individuals do not have to undergo the KYC documentation process to avail the benefits of UPI Lite.
UPI Lite facility comes with zero associated money transfer and account closure charges.
Users can store a maximum UPI Lite account balance of ₹5,000 in their wallets at any given time.
UPI Lite is only accessible to account holders of a few specific authorised banks and financial institutions in India.
After setting up UPI Lite as the online mode of transaction, it automatically becomes the default payment method for initiating transactions of less than ₹1,000.
Individuals cannot enable the UPI Lite facility for multiple bank accounts.
It allows individuals to easily credit funds in their UPI Lite eWallet by making a top-up transaction.
If an individual disables their UPI Lite, the remaining balance will be transferred to their bank account as a refund.
The issuing bank will monitor and regulate any technical issues associated with UPI Lite mode.

How does UPI Lite Work?

The mechanism of UPI Lite involves a user depositing funds into their UPI Lite account using a linked bank account. Upon adding the funds, users can initiate transactions and facilitate fund transfers even in offline mode (debit only) through their mobile phones. However, a stable internet connection is required to add funds to the UPI Lite balance and make credit payments.

How to Use UPI Lite in 2025?

The UPI Lite payment feature can be used via multiple payment gateways in India. Some of these are discussed below:

Via Google Pay

The following is a step-by-step guide on how to use UPI Lite via Google Pay:

Step 1: Install the Google Pay app on your device.
Step 2: Open it and navigate to your profile picture at the top right side of the screen.
Step 3: Click on ‘Pay PIN-free UPI Lite’.
Step 4: Enter the amount you want to add. An individual can add up a maximum value of ₹5,000.
Step 5: Provide the UPI PIN.
Once you go through the above steps, the specified amount will be deducted and added to your UPI Lite balance account.

Via PhonePe

Here is a stepwise process you need to follow to use UPI Lite via PhonePe:

Step 1: Download the PhonePe app on your device.
Step 2: Open the app and tap on your profile picture.
Step 3: Click the ‘UPI Lite’ option under ‘Payment Methods’.
Step 4: Specify the desired amount you want to add. Individuals can add up to ₹5,000.
Step 5: Select the bank account and enter the UPI PIN.
The UPI Lite account will be enabled to facilitate successful payments.

Via Paytm

Here’s how you can use UPI Lite in Paytm:

Step 1: Open the Paytm app on your mobile device.
Step 2: Navigate to your profile picture at the top left side of the screen.
Step 3: Click the ‘UPI & Payment Settings’ and tap the ‘UPI Lite’ option in ‘Other Settings’.
Step 4: Select the bank account supported by UPI Lite.
Step 5: Specify the desired amount you want to add and click the ‘Add Money to UPI Lite’ button.
Step 6: Enter the MPIN.
The UPI Lite account will be activated on Paytm.

How to Transfer Money from UPI Lite to a Bank Account?

Below are the steps to close your UPI Lite account and transfer funds to your registered bank account:

Step 1: Open your preferred UPI app registered with UPI Lite.
Step 2: Navigate to the ‘UPI Lite Settings’ and click on the ‘Deregister UPI Lite’ option.
Step 3: Enter your UPI PIN for confirmation.

In a few minutes, the remaining balance in your UPI Lite account will be transferred to the bank account from which you added money.

UPI Lite Supported Banks List in 2025

Here is a list of banks and financial institutions supporting UPI Lite’s mechanism in India as the remitter party:

S no.	Bank/Institution	Type
1	AU Small Finance Bank	Public bank
2	Axis Bank Limited	Private sector bank
3	Bank of Baroda	Public sector bank
4	Bank of India	Public sector bank
5	Canara Bank	Public sector bank
6	Central Bank Of India	Public sector bank
7	Cosmos Bank	Private sector bank
8	Equitas Bank	Public sector bank
9	Federal Bank	Private sector bank
10	Fincare Small Finance Bank Limited	Public sector bank
11	HDFC Bank Limited	Private sector bank
12	ICICI Bank	Private sector bank
13	Indian Bank	Public sector bank
14	Indian Overseas Bank	Public sector bank
15	Janata Sahakari Bank Limited, Pune	Scheduled Co-operative Bank
16	Karnataka Bank	Private sector bank
17	Kotak Mahindra Bank	Private sector bank
18	Paytm Payments Bank	Public company
19	Punjab and Sind Bank	Public sector bank
20	Punjab National Bank	Public sector bank
21	Saraswat Bank	Multi-State Co-operative Bank
22	State Bank Of India	Public sector bank
23	Shamrao Vithal Co-operative Bank	Co-operative bank
24	Tamilnad Mercantile Bank	Private Sector bank
25	UCO Bank	Public Sector bank
26	Union Bank of India	Public sector bank
27	Utkarsh Small Finance Bank	Scheduled commercial bank
28	Yes Bank	Private sector bank

Benefits of UPI Lite

Following are the benefits you can avail by choosing UPI Lite as your payment method:

The single-factor authentication for payments of less than ₹1,000 through UPI Lite has reduced the infrastructure load on the Remitter Bank's CBS.
Payments initiated through UPI Lite are not recorded in a user’s passbook, providing a clean and uncluttered bank statement.
UPI Lite features a user-friendly interface, making fund transfers convenient and straightforward.
With the use of UPI Lite, the success rate of transfer payments has improved.

UPI Lite vs UPI

Here are the key differences between UPI Lite and UPI:

Point of Difference	UPI	UPI Lite
Product	UPI is a round-the-clock payment system that facilitates real-time transactions between two bank accounts.	UPI Lite is an on-device payment account that facilitates fund transfers between one's UPI Lite account and a recipient's bank account.
Transaction Limit	The maximum amount that can be transferred using UPI on a particular day is ₹1,00,000.	One can transfer a maximum amount of ₹10,000 on a particular day.
Number of Transactions	It allows a user to make a maximum of 20 transactions within 24 hours.	It comes with no limit on the number of transactions made in 24 hours. However, the limit per transaction is ₹1,000.
Fund Transfer	Money can not only be sent but also received through UPI.	Currently, only money can be sent, but it cannot be received. Any money received will be transferred to the user’s linked bank account.
PIN Requirement	To transfer funds via this payment system, the user must input a 4-6 digit PIN.	Funds can be transferred without a PIN.
Record	The issuing bank updates the record of each transaction in the user's passbook.	Transactions made through this account are not recorded in the bank’s passbook. However, the user receives an SMS confirming the transaction status.

Conclusion

A simpler and enhanced version of UPI, UPI Lite, is a valuable addition to India's digital payment ecosystem. Its user-friendly interface aims to improve the digital experience for both banks and account holders. Now that you know how to use UPI Lite, you can easily register and start using it for daily transactions.

Frequently Asked Questions

What is a UPI Lite?

A part of the UPI ecosystem, UPI Lite is a recently launched on-device wallet feature that enables individuals to initiate and process low-value transactions.

What is the difference between UPI and UPI Lite?

The key difference between the two payment solutions is that UPI Lite is a new payment feature within the UPI ecosystem and meant for low-value transactions. Moreover, fund transfers through UPI Lite can be initiated without using a PIN up to ₹1,000 per transaction whereas UPI requires individuals to enter a PIN and have an internet connection.

Which bank launched UPI Lite?

The new digital payment UPI feature, UPI Lite was launched by the Reserve Bank of India in collaboration with the National Payments Corporation of India.

Does UPI Lite work without the internet?

To debit transactions from your UPI Lite account, users will not need an internet connection since all transactions are within ₹1,000 can be carried out in offline mode. On the other hand, an internet connection is required to transfer funds from your registered bank account to your UPI Lite account.

Is there any UPI limit per day?

The UPI limit for transactions made in a day is set at ₹1 lakh in case of regular transfers. This limit is extended to ₹5 lakh in case of transfer initiated by merchants for bill payments.

Is UPI Lite safe?

Yes, UPI Lite is a safe and reliable choice when it comes to cashless payment options. This feature comes with advanced security features, including device binding, that make the UPI account accessible only from a specific device at a time.

About the Author

Mayashree Acharya

Senior Content Writer

I am an advocate by profession and have a keen interest in writing. I write articles in various categories, from legal, business, personal finance, and investments to government schemes. I put words in a simplified manner and write easy-to-understand articles. Read more

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