UPI Lite, UPI123 Pay Transaction Limits Raised To Enable Wider Adoption Of Digital Payments—All About It

The Reserve Bank of India (RBI) has announced a hike in the UPI lite wallet limit from Rs 2,000 to Rs 5,000.

The central bank also raised the UPI lite per transaction limit to Rs 1,000 from Rs 500. 

UPI Lite allows users to carry out PIN-less transactions under Rs 500 and balance limit of Rs 2,000 at any point of time.

UPI Lite was introduced as part of the framework issued by RBI for facilitating small value digital payments in offline mode on 3 January 2022 (updated on 24 August 2023).

Meanwhile, the NPCI, on 27 August, introduced auto top-up on UPI Lite. 

The auto top-up allows balance to be reloaded by any amount chosen by the user, not exceeding UPI Lite balance limit, which was Rs 2,000 now but now been raised to Rs 5,000.

Further, the RBI has also increased the pre-transaction limit for feature phone users through UPI123 Pay to Rs 10,000 from Rs 5,000.

UPI 123PAY is an instant payment system for feature phone users who can use the Unified Payments Interface payment service in a safe and secure manner.

Through UPI 123PAY, feature phone users can make transactions by calling an IVR (interactive voice response) number, using the app functionality in feature phones, using a missed call approach, and using a proximity sound-based system. This facility is now available in 12 languages.

"UPI has transformed India’s financial landscape by making digital payments accessible and inclusive through continuous innovation and adaptation," RBI governor Shaktikant Das said in a statement on Wednesday (9 October).

"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 ₹5,000 to ₹10,000; and (ii) increase the UPI Lite wallet limit from ₹2,000 to ₹5,000 and per-transaction limit from ₹500 to ₹1,000," he added.

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