Last year, the National Payments Corporation of India (NPCI) introduced UPI Lite as a means for swift small-value transactions. This feature, embraced by platforms like Paytm and Google Pay, is now receiving an update in the form of an increased transaction limit. Let’s have a closer look at the details.
New UPI Lite Limit Update
Shaktikanta Das, the Governor of the Reserve Bank of India (RBI), has announced an expansion of the UPI Lite transaction limit from Rs 200 to Rs 500. Previously, UPI Lite users were restricted to transactions up to Rs 200 without requiring a bank statement. The enhanced limit of Rs 500 will streamline the process and provide users with more transaction flexibility.
For those unfamiliar, UPI Lite is tailored for quick small transactions, eliminating the need for entering a UPI PIN. It functions akin to an on-device wallet, enabling UPI benefits even when the regular method faces congestion. Users can still load up to Rs 2,000 into the UPI Lite Wallet.
In a soon-to-come enhancement, UPI will support NFC (near-field communications) for offline payments, facilitated through UPI Lite’s on-device wallet. This will prove particularly advantageous in scenarios where internet connectivity is compromised.
Another noteworthy change is the introduction of Conversational Payments on UPI, which will leverage AI to simplify UPI usage and facilitate payments. Given the demonstrated capabilities of AI with entities like ChatGPT and Google Bard, it’s a logical step for the Indian Government to harness AI for this widely utilized payment method.
While the rollout timeline for these UPI updates remains uncertain, it’s evident that they will enhance usability, ensuring smoother online transactions. What are your impressions of these new UPI features? Do share your insights in the comments section below.
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