RBI Elevates UPI Lite Limits: A Game Changer for India's Digital Payments

The Reserve Bank of India has increased the UPI Lite wallet limit from Rs 2,000 to Rs 5,000 and raised the offline transaction cap to Rs 1,000 per transaction. These changes aim to enhance user convenience and security, marking a significant step in India's digital payments ecosystem.

The Reserve Bank of India (RBI) announced on Wednesday a significant increase in the wallet limit for the UPI Lite platform, raising it from Rs 2,000 to Rs 5,000. This move is part of a broader revision in the rules governing the UPI Lite service, particularly for offline transactions.

Under the updated guidelines, the maximum permissible limit for UPI Lite transactions conducted offline has been doubled to Rs 1,000 per transaction. Previously, the ceiling for digital payment transactions under this framework was set at Rs 500, with an overall limit of Rs 2,000 per payment instrument.

The enhanced transaction limits are effective immediately, expected to benefit users by making digital payments more accessible and convenient for everyday purchases. The RBI emphasized that these changes are designed to strengthen digital payment solutions' effectiveness and security, fostering a more inclusive financial ecosystem. This update follows an earlier announcement by RBI Governor Shaktikanta Das, addressing increased transaction limits specifically for users of keypad mobile phones.

(With inputs from agencies.)