The Reserve Bank of India (RBI) has increased the UPI Lite wallet limit to Rs 5,000 and the per-transaction cap to Rs 1,000, aiming to promote the broader use of instant payment systems via mobile phones. This move is part of the central bank’s efforts to enhance convenience for small-value offline transactions.
Unlike regular UPI transactions, UPI Lite operates offline, eliminating the need for an Additional Factor of Authentication (AFA) and bypassing real-time transaction alerts. Previously, offline payments were capped at Rs 500 per transaction and Rs 2,000 in total. These new limits, outlined in an RBI circular, signify a major upgrade to the offline framework introduced in January 2022, designed to enable small-value digital payments without internet connectivity.
RBI in a statement said, “These enhanced limits aim to provide greater flexibility and convenience to users, enabling seamless low-value payments in offline settings.”
The increase is expected to drive the adoption of UPI Lite, known for its simplicity and efficiency in facilitating instant transactions.
The latest initiative by RBI underscores India’s dedication to building a robust and secure digital payments infrastructure. By extending the benefits of UPI Lite to new user segments and underserved regions, this move aims to bridge the digital divide and advance the nation’s transition toward a cashless economy.
info@thefoundermedia.com
