The use of UPI-based apps for online transactions has been given a significant boost by Covid-19. With the advent of the Unified Payments Interface (UPI), instantaneous financial transactions in India have been completely transformed. Traditional payment systems such as IMPS (Immediate Payment Service), NEFT (National Electronic Funds Transfer), and RTGS (Real Time Gross Settlement) have been replaced by UPI (Real Time Gross Settlement).
There were a record-breaking 6 billion UPI transactions in July 2022, as reported by the National Payments Corporation of India (NPCI). In 2021 and 2022, UPI was used for transactions totaling Rs 84.15 lakh crore. Five times the total amount of debit and credit card transactions.
Yet, as lakhs of transactions are recorded every minute, people are met with slower transaction processes and a plethora of other issues. In recent months, UPI has experienced higher-than-usual rejection rates and technical difficulties. The majority of UPI payments are for smaller amounts, as shown by NPCI data. NPCI released UPI Lite to enhance the efficiency and revolutionary potential of future UPI payments.
What is UPI Lite?
User Payments Interface (UPI) Lite is a “on-device wallet” feature developed by NPCI that enables users to send and receive low-value payments without access to a network. As a result, the new UPI Lite feature streamlines the payment process and lessens the strain on the financial sector.
You can only use UPI Lite to send and receive small amounts of money. This function has been tailored to handle payments of less than Rs 200. In the beginning, only payments will be possible; transferring funds will not be possible. UPI Lite Phase-2 will be released in the future with support for credit transactions.
In the UPI Lite app, users have a maximum daily limit of Rs 2,000 that they can add to their balance. Even when you’re not connected to the internet, you can use UPI Lite to make payments, but you’ll need it to top off your UPI Lite account. To add, the feature will support exchanges of up to Rs 200 in value.
How to get UPI Lite set up in the BHIM app
Step 1: Get the BHIM app from the Play Store or the App Store.
Step 2: Open the app and sign in.
Step 3: Add the details of your bank if your bank account is not linked or set up.
Step 4: In the app, scroll down and click on UPI Lite.
Step 5: Read the information and tap “Enable Now” to turn on UPI Lite.
Step 6: You can now add up to Rs 2,000 to your UPI Lite e-wallet.
Step 7: Choose the bank account and add the money to your wallet.
Step 8: Tap the “Enable” button for UPI Lite.
Step 9: Type in the UPI PIN. Now, your UPI Lite e-wallet is ready to use.