The Reserve Bank of India announced on Thursday that users may now use UPI lite to make payments of up to Rs 500 offline.
Despite the planned increase in the offline mode limit from Rs 200 to Rs 500, the overall limit for UPI Lite transactions would remain at Rs 2,000. This is done to reduce the dangers of lowering two-factor authentication. This decision aims to promote broader use of this payment option.
The National Payments Corporation of India (NPCI) and RBI launched UPI Lite in September 2022. Users can execute low-value transactions without encountering banks’ sporadic processing issues in offline mode.
To use the services, users must install a UPI Lite-compatible app on their phones. They can make a UPI Lite ID and add funds to their UPI Lite balance when the software has been installed.
By introducing numerous criteria over the payment system, the central bank has also proposed to enable “Conversational Payments” over UPI. The National Payments Corporation of India (NPCI) is getting ready to provide “Conversational Payments” on UPI in an effort to better utilize cutting-edge technology for digital payments. Through interactions with AI-enabled devices, users can safely complete money transactions with this functionality.
Users will be able to conduct payments through dialogue with AI-powered devices thanks to conversational payments.
Another significant improvement involves the ‘UPI-Lite’ on-device wallet, which enables users to conduct offline UPI payments utilizing Near Field Communication (NFC) technology.
For UPI Lite, the Reserve Bank of India (RBI) is thinking about using near-field communication (NFC) technology for offline payments. Digital retail payments are now possible even where there is little to no internet or telecom connectivity because to this capability.
The Governor stated during the announcement that the action would expand the use and reach of digital payments throughout the nation.
By addressing connectivity issues, near field technology for offline payments ensures smooth transactions even in places with spotty network coverage.
This will make transactions simpler and usher in a new era of accessibility and comfort for both people and companies.
The Unified Payments Interface (UPI) has undergone substantial adjustments as a result of the Reserve Bank of India’s (RBI) announcement, perhaps foreshadowing a change in the payments environment.
During the RBI’s bimonthly policy review, Shri Shaktikanta Das, Governor of the Reserve Bank of India, provided these updates. The key repo rate was held constant by the Monetary Policy Committee (MPC) at 6.5 percent.
Being accessible on both smartphones and feature phones is expected to increase the rate of digital adoption in the nation. Other Indian languages will be added after the initial Hindi and English versions. The RBI will give comprehensive rules.
The RBI has recommended raising the UPI Lite transaction cap for offline use from Rs 200 to Rs 500. For minor transactions and transportation payments, this method enables fast, dependable, and contactless payments.
In order to make quick payments, customers tap their smartphones on point-of-sale (PoS) terminals. Guidelines for this functionality will be sent to the National Payments Corporation of India (NPCI), which is in charge of UPI and UPI Lite.
