With an aim to make online transactions more secure and hassle-free, homegrown Paytm Payments Bank Limited (PPBL) has launched the UPI Lite feature on its platform. The feature makes it easier for customers to make small transactions without entering a PIN every time.
UPI LITE was made by the National Payments Corporation of India (NPCI), and it was launched by the Reserve Bank of India (RBI) in September 2022. Here are a few things that will help you better understand about UPI LITE.
What is UPI LITE?
UPI LITE refers to the service provided by your issuing bank that allows you to conduct low-value transactions using an ‘on-device’ wallet.
UPI vs UPI LITE
UPI can be used for both high and low-value transactions. UPI Lite, on the other hand, is only intended for low-value transactions. The maximum transaction limit in UPI is Rs 2 lakh, while the maximum transaction limit in UPI LITE is Rs 200, with a maximum of Rs 2000 stored twice as a UPI Lite balance at any given time. The PIN is required to validate transactions in UPI, but it is not required in UPI LITE.
According to Praveena Rai, COO of NPCI, with more than 50 per cent of UPI transactions under Rs 200, UPI LITE will provide a distributed way of authorising low-value transactions, removing them from core banking. This will increase transaction success rates, improve user experience, and bring us one step closer to processing one billion transactions per day on the UPI platform.
UPI LITE: how does it work?
To begin using UPI Lite, you will first need to transfer money from your bank account into the app wallet that you have downloaded. You will be able to make payments through UPI Lite using these pre-loaded funds at a later time.
How to set up Paytm UPI LITE?
- To begin, navigate to the Paytm home page and select ‘Profile,’ which is located on the top left.
- Now, select “UPI and Payment Settings” and then “UPI LITE” under “Other Settings.”
- Choose your bank account that is eligible for “UPI LITE” now.
- Then, on the ‘Add Money to Activate UPI LITE’ page, enter the amount to be added to UPI LITE.
- After you enter and validate your MPIN, your UPI LITE account will be created.
- Following the creation of the UPI LITE account, you can make payments with a single tap.
According to the bank, PPBL is the largest acquiring and beneficiary bank in UPI and one of the leading remitter banks. The Bank is the first payments bank to launch UPI LITE as part of its efforts to drive innovation.