UPI Lite Transaction Limit and Features Explained

With over 12 billion UPI transactions recorded in January 2024 alone, India's digital payments ecosystem continues to expand at an unprecedented rate. However, a significant portion of these transactions—around 50%—are for small-value payments below ₹200.

To streamline these microtransactions and reduce the load on banking infrastructure, the Reserve Bank of India (RBI) introduced UPI Lite in September 2022. Designed for faster and more reliable low-value payments, UPI Lite eliminates the need for UPI PINs, making everyday transactions like grocery purchases, metro recharges, and food payments seamless. As of 2024, more than 50 million users have adopted UPI Lite, signalling its growing importance in India's cashless economy.

What is UPI Lite?

UPI Lite is an online wallet within UPI apps introduced by NPCI that allows you to transact money without using your UPI PIN. It permits only small-value payments of up to ₹1000 per transaction and has a daily limit of ₹4,000. This UPI Lite feature is available in various Unified Payments Interface apps like Google Pay and PhonePe.

What is the UPI Lite Limit?

Using UPI Lite, you can only transact ₹1,000 per transaction. In a day, you can add up to ₹4,000 INR to make multiple payments. Additionally, the UPI Lite wallet can only hold a maximum amount of ₹5,000 INR at a time.

What is UPI Lite X?

UPI Lite X is an innovative extension of UPI Lite, launched in September 2023, designed to facilitate offline transactions without requiring internet connectivity. By leveraging Near Field Communication (NFC) technology, UPI Lite X enables seamless money transfers between on-device wallets, offering a unique and efficient solution for quick payments in various scenarios.

UPI Lite X Limit

The maximum limit for a UPI Lite X transaction is ₹1,000, while the total UPI Lite X balance cannot exceed ₹2,000 at any given time. The total number of transactions is limited to one debit and 10 credit offline transactions. These limits may be adjusted periodically as determined by NPCI.

How to Activate and Use UPI Lite?

UPI Lite follows a simple mechanism that ensures ease of use and faster transactions. Here’s how it works:

1. Registration 

   If you’re a new user, you need to download a UPI-enabled app like Google Pay, PhonePe, or BHIM and link your bank account. Existing users can enable UPI Lite within their app settings.

2. Adding Funds 

   Users can add up to ₹4,000 per day to their UPI Lite wallet directly from their linked bank account. The wallet can hold a maximum of ₹5,000 at a time. 

3. Making Payments 

   Once funds are added, users can make payments up to ₹1000 per transaction without entering a UPI PIN. Payments can be made using QR codes, UPI IDs, or phone numbers.

4. Offline Transactions (UPI Lite X) 

   With UPI Lite X, users can make offline payments using NFC technology. This feature is beneficial in areas with poor connectivity.

5. Transaction History 

   Transactions are recorded within the app, providing a simplified way to track payments without cluttering bank statements.

6. Refund Requests 

   In case of an erroneous transaction or device loss, users can request refunds through their respective banks.

Features of UPI Lite

UPI Lite comes with several features that make small transactions seamless and efficient:

1. No UPI PINs

   Users are not required to enter their UPI PINs while making transactions, making payments faster and easier.

2. No Transaction Fees 

   UPI Lite does not charge any fees for transferring funds, making it an economical choice for small transactions.

3. No KYC Requirements 

   Users do not have to undergo Know Your Customer (KYC) verification, simplifying the onboarding process.

4. Offline Mode with UPI Lite X 

   UPI Lite X enables offline transactions through NFC technology, allowing payments even without an internet connection.

5. Exclusive In-App Record Keeping 

   Transactions made through UPI Lite are recorded only within the app and do not reflect in your bank statement, reducing clutter.

6. Easy Refunds 

   If a user loses their mobile phone with an active UPI Lite account balance, they can request a refund from their bank.

7. Faster Transactions 

   Since transactions do not require PIN authentication, payments are processed instantly.

8. Multiple Payment Methods 

   UPI Lite supports QR code-based transactions, phone number-based payments, and UPI ID transfers.

9. Secure Transactions 

   UPI Lite operates within the security framework of the UPI ecosystem, ensuring safe and authenticated payments.

10. Optimized for Low Network Conditions 

    UPI Lite ensures seamless transactions even in areas with poor internet connectivity.

Benefits of UPI Lite

1. Hassle-free small-value payment gateway 

   With UPI Lite, you can make quick payments for small-ticket items without needing a UPI PIN.

2. Reliable transactions 

   Despite peak loads on the UPI infrastructure, UPI Lite ensures that transactions below ₹1000 are processed efficiently and reliably.

3. Versatility 

   UPI Lite allows you to scan and pay using UPI QR codes or transfer funds via VPAs, UPI IDs, phone numbers, and bank accounts.

4. Organized transactions 

   All your transactions made through UPI Lite are organized within the app, making it easier for you to track your payment history. This also reduces clutter in bank passbooks.

    

Difference Between UPI and UPI Lite