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

UPI Lite has further enhanced India’s online payments system in today's digital landscape, ensuring accessibility for all Indian citizens, regardless of internet connectivity. This article will walk you through a detailed guide on UPI Lite while highlighting all the details you need to know. 

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 meant for low-cost transactions below Rs. 500 without the need for a PIN.

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

Key Features of UPI Lite

Here are the salient features of UPI Lite that you need to know before initiating any payments: 

• UPI Lite enables individuals to initiate payments of up to Rs. 500 per transaction on their preferred online payments app without requiring the UPI PIN. Overall, a total transaction of Rs. 4,000 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 Rs. 2,000  in wallets.
• 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 less than Rs. 500.
• 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. 
• In the event an individual disables his/her UPI Lite, the remaining balance will be transferred to his/her 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 his/her 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? 

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 Rs. 2,000. 

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 Rs. 2,000. 

Step 5: Select the bank account and enter the UPI PIN.

The UPI Lite account will be enabled to make payments successfully.

Via Paytm 

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

Step 1: Go to the Paytm app on your mobile.

Step 2: Open it and 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 where you added money. 

UPI Lite Limit Per Day 

Within the UPI Lite system, you have the flexibility to spend a maximum of Rs. 4,000 on a daily basis while engaging in instant transactions with an upper limit fixed at Rs. 500 for each transaction. Moreover, you can maintain a maximum balance of Rs. 2,000 daily in your UPI Lite account.

UPI Lite Supported Banks List

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

Benefits of UPI Lite

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

• With the use of UPI Lite, the success rate of transfer payments has improved. 
• The single-factor authentication for payments less than Rs. 500 through UPI Lite has reduced the infrastructure load on Remitter Bank CBS.
• Payments initiated through UPI Lite are not recorded in a user’s passbook, offering an uncluttered bank statement. 
• UPI Lite comes with a user-friendly interface, resulting in convenient transfer of funds. 

UPI Lite vs UPI

Here are the key differences between UPI Lite and UPI:

A simpler and enhanced version of UPI, UPI Lite is a valuable addition to the digital payment ecosystem of India. 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. 

Related Articles:
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2. UPI Transaction Charges
3. Income Tax On UPI Transactions
4. How To Do UPI Payment Without Internet
5. What is UPI ID? How to Create and Change UPI ID?
6. How To Increase UPI Transaction Limit In SBI?