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PhonePe UPI LITE feature enables users to quickly initiate low-value payments of up to Rs 200 from their UPI LITE account with just one tap. Read to know more.
UPI LITE was launched in September 2022 by the Reserve Bank of India (RBI) and was developed by the National Payments Corporation of India (NPCI). It is widely accepted by major banks and can be used across all UPI merchants and QRs throughout the country. It should be noted that Paytm launched the feature back in February.
Through this feature, users can easily make low-value payments under Rs 200 with just one tap from their UPI LITE account without the need to enter a PIN. The transaction is processed instantly by deducting the UPI LITE balance on the device, without requiring the involvement of the customer's bank's core banking systems (remitter bank). This feature enhances the transaction experience by making it smoother and quicker than regular UPI transactions while improving the likelihood of a successful transaction.
Activating the feature on the PhonePe app is a hassle-free process that does not require any KYC authentication from the users. This simple process allows them to create a UPI LITE account instantly. The LITE account allows users to load a maximum of Rs 2,000 and conduct transactions of Rs 200 or less.
Users can check their transaction history by receiving a daily SMS from their bank. This SMS will contain information about all UPI LITE transactions carried out during the day. In addition, this feature helps to simplify bank statements and passbooks by removing small-value transactions. The transactions will solely be visible in the LITE account and will not be reflected in the bank statement.