UPI Lite to launch in India soon: What is it and what are the features? Details here

The National Payments Corporation of India (NPCI) is about to launch a new mobile payments service called UPI Lite. It would be an alternative to other mobile wallets including MobiKwik and Paytm. UPI Lite will be based on the Reserve Bank of India's (RBI) framework for small digital transactions in the offline mode. Keep reading to know more about the UPI Lite features, release date and other important things to know. 

Users who are already using UPI for making digital payments will have UPI Lite as an option. It will provide a similar use case as other digital wallet applications - users will have to recharge their UPI Lite wallets or add some funds to them in order to make transactions. These funds will then be available to utilize offline. It is important to note that the maximum transaction limit will be set at Rs. 200. Additionally, the maximum amount that can be deposited to the UPI Lite wallet is Rs. 2,000. 

Important things to know about the UPI Lite services

• UPI Lite Services are enabled to provide digital cash facilities to users, which is part of their valid bank account. 
• One should be a UPI registered user in order to avail UPI Lite services. 
• All valid bank accounts of users linked to their UPI apps may not be eligible for UPI Lite.
• In case of any inactivity, NPCI shall have the right to terminate or suspend the UPI Lite services of the user. 
• Any refund or reversal of funds under a transaction will appear in users' valid bank account daily. 
• Users may receive SMS once per day for the UPI Lite transactions made by them from the issuing bank.

The UPI Lite will have similar functionality as the regular mobile wallets. Users will not be required to enter a PIN while making transactions through UPI Lite. However, NPCI recommends users set up a device authentication process or passcode for transitions. Additionally, users will be shown the remaining balance in their UPI Lite wallet every time they make a transaction. Further, UPI apps will also use UPI Lite by default for transactions less than Rs. 200. However, the UPI Lite launch date has not been announced yet.