The Reserve Bank of India (RBI) has raised the UPI Lite wallet limit to ₹5,000 and the per-transaction limit to ₹1,000 to encourage broader adoption of the instant payment system via mobile phones. The revised limits are part of the central bank’s efforts to enhance convenience for small-value transactions in offline mode.
Unlike regular UPI transactions, UPI Lite transactions are offline, bypassing the need for an Additional Factor of Authentication (AFA), and transaction alerts are not delivered in real-time.
Previously, the upper limit for offline payments was set at ₹500 per transaction, with a total cap of ₹2,000. The new limits, outlined in a circular issued by the RBI, mark a significant expansion of the ‘offline framework’ first introduced in January 2022 to facilitate small-value digital payments without requiring internet connectivity.
“These enhanced limits aim to provide greater flexibility and convenience to users, enabling seamless low-value payments in offline settings,” stated the RBI.
The enhanced limits are expected to drive further adoption of UPI Lite, a platform already recognized for its simplicity and effectiveness in facilitating instant transactions.
Dilip Modi, Founder, and CEO, Spice Money on RBI increases UPI Lite wallet limit to ₹5,000, transaction cap to ₹1,000, stated that, “The Reserve Bank of India’s decision to increase the UPI Lite wallet limit to ₹5,000 and enhance the per-transaction limit to ₹1,000 marks a significant milestone in fostering a more inclusive digital payment ecosystem. This move directly addresses the needs of individuals in regions with inconsistent internet access by enabling faster, more convenient offline transactions, particularly for small-value payments.
This initiative further strengthens the foundation for a robust and secure digital payments framework by expanding the reach of UPI to new user segments. It also encourages small-scale merchants and consumers to adopt digital payment methods, reducing dependency on cash transactions. Moreover, this step reflects India’s commitment to leveraging technology for financial inclusion, ensuring that the benefits of digital payments extend to the most underserved communities.
At Spice Money, we see this as a crucial step in bridging the digital divide between urban and rural India. The UPI Lite feature, which functions without requiring internet connectivity, is particularly suitable for remote areas where reliable internet access is scarce. This advancement aligns with our mission to empower underserved communities by providing them with seamless and secure digital payment options. It will not only drive financial literacy and trust in digital payments but also strengthen the shift towards a cashless economy, boosting financial empowerment across the country.”
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