The Reserve Bank of India (RBI) has proposed to increase the transaction limit of UPI Lite from Rs 200 to Rs 500 in offline mode, aiming to enhance convenience for users and promote digital payments.
The Reserve Bank of India (RBI) proposed on August 10 to increase the transaction limit of UPI Lite. The RBI proposed to increase the per transaction payment limit for UPI Lite in offline mode from Rs 200 to Rs 500, in a bid to bring more convenience to users and deepen the reach of digital payments in the country.
Currently, the Reserve Bank of India (RBI) prescribed a limit of Rs 200 per transaction and an overall limit of Rs 2,000 per payment instrument for small value digital payments in offline mode, including for National Common Mobility Card (NCMC) and UPI Lite.
However, the one-time transaction limit will soon be increased to ?500. The overall daily transaction limit has been maintained at ?2,000 to mitigate the risks associated with relaxing two-factor authentication.
“With the objective of harnessing the new technologies for enhancing digital payments experience for users it is proposed to… enhance the transaction limit of small value digital payments in offline mode to Rs 500 from Rs 200 within the overall limit of Rs 2,000 per payment instrument. These initiatives will further deepen the reach of digital payments in the country,” said RBI Governor Shaktikanta Das while announcing the decisions of the monetary policy committee meeting.
UPI Lite is a simplified version of the original UPI payment system, introduced by the National Payments Corporation of India (NPCI) and RBI in September 2022. It is designed to facilitate hassle-free small-value transactions, reducing the impact of occasional processing failures faced by users during regular UPI transactions.
To achieve this, the government has eliminated the requirement to enter a UPI PIN during transactions using UPI Lite. By removing the need for two-factor authentication for small-value transactions, these channels further enable a faster, more reliable, and contactless mode of payment for everyday small-value transactions, transit payments, and more.