Reserve Bank Boosts UPI Lite Wallet Limit for Offline Transactions

The Reserve Bank has increased the UPI Lite wallet limit to Rs 5,000 and per-transaction limit to Rs 1,000 to promote the use of the instant payment system. UPI Lite transactions are offline, eliminating the need for immediate transaction alerts and Additional Factor of Authentication.

The Reserve Bank has announced an increase in the UPI Lite wallet limit to Rs 5,000, with a per-transaction cap of Rs 1,000. This move aims to boost the use of the popular instant payment system via mobile devices.

By offering offline transactions, UPI Lite eliminates the need for an Additional Factor of Authentication (AFA) and does not immediately send transaction alerts, enhancing user convenience.

The amendments to the 'offline framework' initially issued in January 2022 reflect the central bank's commitment to facilitating small value digital payments in offline mode. The decision, unveiled in October, signifies a strategic shift towards digital financial inclusivity.

(With inputs from agencies.)