New UPI rules 2024: The Reserve Bank of India (RBI) has enhanced the transaction threshold for offline digital payments made via UPI Lite. This increase in UPI Lite transaction limit is particularly advantageous for individuals residing in areas with unreliable internet access. A notable feature of UPI Lite transactions is that they can be completed without entering a UPI PIN.
New UPI Lite Limits 2024
The RBI has revised two key limits:
- The per-transaction UPI Lite ceiling has been increased from Rs 500 to Rs 1,000
- The total wallet capacity for UPI Lite has been expanded from Rs 2,000 to Rs 5,000.
An announcement in this regard had been made by RBI governor Shaktikanta Das in the monetary policy review in October.
“UPI has transformed India’s financial landscape by making digital payments accessible and inclusive through continuous innovation and adaptation. To further encourage wider adoption of UPI and make it more inclusive, it has been decided to (i) enhance the per-transaction limit in UPI123Pay from Rs 5,000 to Rs 10,000; and (ii) increase the UPI Lite wallet limit from Rs 2,000 to Rs 5,000 and per-transaction limit from Rs 500 to Rs 1,000,” Das had said.
The amendment to the framework for UPI Lite was announced by the RBI on December 4, 2024.
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What is UPI Lite?
UPI aims to streamline small-value digital payments for offline transactions. UPI Lite enables users to complete low-value purchases without requiring internet connectivity, thereby enhancing transaction efficiency.
UPI Lite has been specifically created to facilitate quick, small-value offline transactions, which constitute the majority of retail payments throughout India.
Users can utilise the rechargeable balance for small purchases at Kirana stores, pharmacies, restaurants, shops, fuel retail outlets and various other establishments.
An additional benefit is that these UPI LITE transactions remain separate from the bank passbook, ensuring cleaner record-keeping.
Benefits of UPI Lite
UPI Lite offers 24/7 accessibility to users, efficient handling of low-value transactions, and straightforward transaction monitoring. Users can perform single-click transactions through UPI Lite, set daily spending limits, and avoid entering UPI Pin publicly for small payments.
