The Reserve Bank of India (RBI) introduced a new payment system called UPI Lite in September 2022. It is a simplified version of the original UPI payment system, which allows users to initiate small-value transactions every day without facing payment failure issues in case of problems in bank processing and more.
UPI Lite is a simplified version of UPI that is designed for low-value transactions. Unlike regular UPI transactions, which have a daily limit of Rs 1 lakh, UPI Lite transactions are limited to Rs 200 per transaction. To use UPI Lite, users must first add money to their UPI Lite account through their linked bank account. Once the account is set up, users can add up to Rs 2,000 to their UPI Lite account twice a day, for a total daily limit of Rs 4,000.
UPI Lite is a good option for people who want to make small, frequent payments. It is also a convenient and flexible payment method, as Lite users have the option to close their account at any time or transfer funds from their Lite account to their bank account with a single click, and without incurring any fees.
Let’s take a look at how to set up UPI Lite on popular payment gateways including Google Pay, PhonePe and Paytm.
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How to use UPI Lite on GPay
- Open the Google Pay app.
- Tap on your profile picture at the top right corner.
- Tap on Pay Pin Free UPI Lite.
- Follow the on-screen instructions to add money to your UPI Lite balance. You can add up to ?2,000 INR.
- To add money, choose an eligible bank account that supports UPI Lite.
- Add money
- Once you have added money to your UPI Lite balance, you can make payments of up to Rs 200 INR without entering your UPI PIN.
- To make a payment, simply select the UPI Lite option when you are prompted to enter your UPI PIN. Your payment will be deducted from your UPI Lite balance.
How to use UPI Lite on PhonePe
- Open the PhonePe app.
- Tap UPI Lite on your PhonePe app home screen. You can also, tap your profile picture and tap UPI Lite under the Payment Methods section.
- Tap on UPI Lite.
- Follow the on-screen instructions to add money to your UPI Lite balance. You can add up to Rs 2,000 INR.
- Once you have added money to your UPI Lite balance, you can make payments of up to Rs200 INR without entering your UPI PIN.
How to use UPI Lite on Paytm
- Open the Paytm app
- On the Home page find and click on ‘Introducing UPI Lite’.
- Select a linked bank account that is supported by Paytm UPI Lite.
- Add money to UPI lite.
- Once the money has been added you can pay to the recipient by scanning QR code or to a mobile number linked with UPI ID.
