NPCI has recently launched UPI Lite to enable low value transactions through the BHIM App. UPI payments currently account for 96% of overall digital payments. You can make transactions as low as Rs. 200 or less using UPI Lite. The feature will also allow users to make payments offline via the QR code. You will have a wallet on your UPI Lite to which you can transfer utmost Rs. 2000 anytime.
How Does UPI Lite Work?
- UPI Lite has a virtual balance on it. This is held only by the issuing bank and not by NPCI.
- There is no money transfer or receipt between NPCI and the issuing bank.
- Nil interest will not be payable on the UPI Lite balance.
- Only customers of these banks will be able to use the UPI Lite payment system currently: State Bank of India (SBI), Union Bank of India, Utkarsh Small Finance Bank, Canara Bank, HDFC Bank, Kotak Mahindra Bank, Indian Bank, and Punjab National Bank.
- The Economic Times stated that You will be able to add funds on the UPI Lite wallet only in online mode with additional factor authentication (AFA) or using UPI Auto Pay, which has been registered by the user in online mode with AFA.
- The unutilized balance will be credited to your bank account in case you disable UPI Lite.
- The NPCI stated that in the first phase, UPI Lite will process transactions in near offline mode, i.e., debit (payments) can be made without an internet connection and credits into the account will be done online. However, there is a plan to make UPI Lite offline in the future where customers can do both debit and credit transactions in complete offline mode.
Features of UPI Lite
- Users won’t need to enter the UPI PIN to carry out transactions.
- Even without the internet, UPI transactions will be possible
- UPI Lite will enable transactions up to Rs. 200
- You can add money to UPI Lite via your bank account.
- Users can put the maximum amount of Rs. 2000 into the UPI wallet at any point of time.
- Currently, only the BHIM app provides UPI Lite
- You can enable UPI Lite for one account only in the App.
- You can verify your UPI Lite balance via SMS but not on the app.
- Together, RuPay Credit Card on UPI, UPI LITE, and Bharat BillPay Cross-Border Bill Payments initiatives give the potential to revolutionize the digital payments ecosystem.
How To Set Up ‘UPI Lite’ on Your BHIM App?
Step 1: Download and install the BHIM app on your smartphone.
Step 2: Login and add a bank account for UPI transactions.
Step 3: Tap the UPI Lite banner after scrolling down.
Step 4: Click the ‘enable now’ button.
Step 5: Enter the amount you want to transfer and choose the bank account.
Step 6: Enable UPI Lite.
Step 7: Enter the UPI PIN. Your UPI Lite eWallet will be activated post transferring the amount.
How should Users Check UPI Lite Transaction History?
UPI Lite transactions except top-ups will not get displayed on your bank account statement or passbook. The bank will send out an SMS that contains the summary of all the UPI Lite transactions carried out during the day, to the customer. The Economic Times reported that as per the NPCI website, any disputes regarding enablement, top-up, or disablement of UPI Lite shall be referred to and handled by the issuing bank.
UPI Lite will help in extending digital payments to more and more users across India and abroad. The wallet also aims to facilitate low value transactions without an UPI PIN in the offline mode.
FAQS Step-By-Step Guide: How To Set Up 'UPI Lite' in BHIM App
1:Are BHIM UPI and Google Pay the same?
BHIM app and Google Pay (previously Tez) are both apps based on UPI. Both have almost the same features but also distinct differences too.
2:How to get UPI Lite?
You can start using the UPI Lite service immediately on the BHIM UPI App, since it has been launched with 8 banks.
3:How can I get the BHIM UPI PIN?
You can set your UPI PIN by moving to the Main Menu - Bank Accounts - Set UPI PIN for the chosen account. You will be asked to input the last 6 digits of your debit/ATM card along with the expiry date. You will then get an OTP which you will enter to set your UPI-PIN.