Introduction
A new payment option called UPI LITE makes use of the dependable NPCI Common Library (CL) application to process low-value transactions with a set value of less than 200. In order to guarantee system acceptance, and compliance, the solution uses mobile-specific UPI ecosystem protocols. The UPI LITE experience is intended to be a user-friendly method for facilitating low-value transactions without utilizing the core banking systems of a Remitter bank in real time and to adequately mitigate risk.
FAQs
Will UPI Lite work without the internet? According to what was previously stated by the NPCI, in phase one, UPI Lite will process transactions in a manner that is similar to offline mode. This means that debit (payments) can be made without the need for an Internet connection, and credits into the account will be made online.
What are the charges for UPI Lite? UPI Lite is free of cost and you won’t be charged anything extra.
Who can use UPI Lite?
According to an NPCI press release, the BHIM app now supports the UPI Lite feature. The BHIM app is currently available to eight banks’ UPI Lite customers. According to the NPCI, these financial institutions include Canara Bank, HDFC Bank, Indian Bank, Kotak Mahindra Bank, Punjab National Bank, State Bank of India Union Bank of India, and Utkarsh Small Finance Bank.
Benefits
In the P2PM category, UPI Lite is an excellent option for making payments at local stores.
The majority of transactions are under Rs. 200. In addition, unless you like to keep track of where you spend your money, the user does not have to see hundreds of entries on the bank account statement. There are only a few online industries in which the majority of transactions are less than Rs. 200. A few examples: Gaming, mobile recharge, and quick commerce (to some extent) are all supported by UPI Lite at this time (P2M).
Upon completion, UPI Lite will address a number of SRT, scalability, and availability issues.
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UPI Lite was launched in September 2022, will be updating the article as and when more information is provided :)