RBI has raised the per transaction limit for UPI Lite to Rs. 500 (US$ 6.04) from Rs. 200 (US$ 2.41) to promote digital transactions
- IBEF
- August 11, 2023
On August 10, 2023, the Reserve Bank of India (RBI), proposed raising the per-transaction payment limit for Unified Payments Interface (UPI) Lite in offline mode to Rs. 500 (US$ 6.04) and announced other measures to expand the country's reach and adoption of digital payments.
The Reserve Bank has established limits of Rs. 200 (US$ 2.41) per transaction and Rs. 2,000 (US$ 24.15) overall per payment instrument for small-value digital payments made in offline mode, including those made with National Common Mobility Card (NCMC) and UPI Lite.
These channels provide faster, more dependable, contactless payment methods for regular small-value purchases, transit payments, etc. by eliminating the requirement for two-factor verification for small-value transactions.
To mitigate the dangers connected with relaxing two-factor authentication, the overall limit is still set at Rs. 2,000 (US$ 24.15), and guidelines in this respect would be released soon, Mr. Shaktikanta Das, RBI Governor said.
It is proposed to enable "Conversational Payments" on UPI, which will allow users to engage in conversation with AI-powered systems to make payments, as well as introduce offline payments on UPI using Near Field Communication (NFC) technology through "UPI-Lite" on-device wallet, with the aim of leveraging new technologies to improve the digital payments experience for users, he added. This channel will be made available in both smartphones and feature phones-based UPI channels, thereby helping in the deepening of digital penetration in the country. The feature would initially be available in Hindi and English and will then be made available in other Indian languages.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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