RBI has also raised the threshold of bulk deposits in banks to Rs 3 crore from Rs 2 crore earlier.
The Reserve Bank of India on Friday announced the introduction of the UPI LITE e-mandate to create a more seamless payment ecosystem.
UPI Lite was introduced in September 2022 to enable small value payments quickly and seamlessly through an on-device wallet.
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What Will Change Now?
To encourage wider adoption of UPI Lite, RBI today proposed to bring it under the e-mandate framework by introducing a facility for customers to automatically replenish their UPI Lite wallets if the balance goes below the threshold limit set by them. This will further enhance the ease of making small-value digital payments.
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What Is UPI LITE?
UPI LITE is a payment solution designed to handle low-value transactions below Rs 500.
UPI LITE utilises the reliable NPCI Common Library (CL) application to process these payments, integrating seamlessly with the existing UPI ecosystem on mobile phones to ensure consistency, compliance, and broad acceptance.
UPI LITE aims to provide a user-friendly experience for small transactions, bypassing the need for real-time processing by the remitter bank’s core banking systems, while still maintaining adequate risk mitigation.
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RBI MPC June 2024
RBI decided to keep the policy rate unchanged for the eighth time in a row, saying it would maintain a tight vigil on inflation.
RBI has also raised the threshold of bulk deposits in banks to Rs 3 crore from Rs 2 crore earlier.
RBI to take further steps to moderate unsecured loans and advances.
It added that few regulated entities still charge certain fees without proper disclosures.
