The Reserve Bank of India (RBI) Governor, Shaktikanta Das, launched three key digital payment initiatives at the Global Fintech Fest 2022. The three digital payment initiatives that were launched by the RBI are RuPay Credit Card on Unified Payments Interface (UPI), UPI Lite, and Bharat BillPay Cross-Border Bill Payments.
UPI Lite will provide users with a convenient solution for faster and simpler low-value transactions, the National Payments Corp Of India (NPCI) said in a statement. Currently, India has been using the Unified Payments Interface (UPI) for low-value payments with 50 per cent of transactions through UPI below ₹200.
HOW UPI LITE WORK:
Transactions in near-offline mode
Now that UPI Lite on BHIM App will be enabled, the users will be able to make small-value transactions in a near-offline mode. The launch of the UPI Lite will reduce the debit load on the core banking system, thereby improving the success rate of transactions further, enhancing the user experience, and taking us one step closer to processing a billion transactions a day on the UPI platform.
Total limit on UPI Lite:
The upper limit of a UPI Lite payment transaction will be ₹200. The total limit of the UPI Lite digital payment mode on the wallet on a device would be ₹2,000 at any point in time. Customers of these eight banks would be able to use UPI Lite digital payment system. These are Canara Bank, HDFC Bank, Indian Bank, Kotak Mahindra Bank, Punjab National Bank, State Bank of India (SBI), Union Bank of India and Utkarsh Small Finance Bank.
RuPay Credit Card on UPI and Bharat BillPay Cross-Border Bill Payments were also launched that are likely to make bill payments easier for people residing out of India but also maintaining a house in India.