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The Reserve Bank (RBI) has increased the limit of digital payment solution UPI Lite. Now it has become even more convenient to use. Let us know what UPI Lite is, how much its limit has increased and who will benefit from the increase in limit.
What is UPI Lite?
UPI Lite is an online wallet in the UPI app. It has been introduced by National Payments Corporation of India (NPCI) with the facility of making payment without entering PIN. The UPI Lite payment system actually works without using banking infrastructure. Most people use it to purchase small quantities. Like milk, fruits or vegetables.
How does UPI Lite work?
UPI Lite allows users to store money directly on their devices, just like they carry money in their pockets. This makes payment very easy. Also, not every transaction requires accessing the bank server. This feature phone also provides digital payment facility to the users. Also, small amount transactions become easier for those using UPI Lite wallet.
5 thousand balance in UPI Lite wallet
Now users can keep balance up to Rs 5,000 in UPI Lite Wallet. Earlier this limit was only Rs 2,000. Earlier the per transaction limit was also very low i.e. only Rs 100. But now this has also been increased to Rs 500. You can refill the wallet from the linked bank account when the balance is exhausted. This will also eliminate the possibility of misuse of your wallet.
Payment limit increased on UPI123Pay.
RBI has increased the payment limit on UPI123Pay to Rs 10,000, which was earlier only Rs 5,000. This will especially benefit those people who use feature phones instead of smartphones. These people can make digital payments even when there is no internet connectivity. They have to enter a 4-6 digit transaction PIN for payment.
How to pay with UPI123Pay
UPI 123Pay is designed keeping in mind the 40 crore users in India who use feature phones. Through this they can make digital payments without a smartphone or internet connection. Users can set up UPI 123Pay by dialing *99#, selecting their bank, entering debit card details and creating a UPI PIN. This makes secure transactions possible even without internet access.