UPI Lite To Launch In India Soon, Will Allow Users To Make Offline Microtransactions

The Reserve Bank of India (RBI) recently launched a new digital payment mode called UPI123Pay for feature phones. While the new feature is targeted towards millions of feature phone users across the country, it will help National Payments Corporation of India (NPCI) achieve its dream of billion-plus daily UPI transactions. In the wake of the same goal, a new On-device Wallet known as UPI Lite will be launched soon to let users make microtransactions offline.

The new payment interface will come as an alternative to PayTM, MobiKwik, and other digital wallets, along with the added feature of offline usability. Let’s take a closer look at the UPI Lite wallet to be launched soon and find out how it will work.

UPI Lite To Launch In India: Advantages, Features

UPI Lite will be launched as an on-device wallet that allows users to make transactions under ₹200 at the initial stage. According to a circular published by National Payments Corporation of India (NPCI), the new payment interface will be based on the RBI’s framework. Besides making small-value digital transactions effortless, it will also allow users to save money in their wallets.

Initially UPI Lite shall be launched as a pilot with multiple banks and app providers, and after a due comfort is achieved, the full-scale commercial launch with compliance timelines for onboarding for the issuers and app providers shall be declared.

Kunal Kalawatia, NPCI Chief of Product

The upcoming offline payment interface will offer the following advantages to the UPI ecosystem:

• Superior user experience using faster near real-time small value payments.
• Uncluttered bank statement for the User.
• Reduction of load on core banking system of the member bank.

UPI Lite On-Device Wallet: Here’s How It Will Work

The circular states that in the first phase, UPI Lite will process transactions in a semi-offline mode to let users first debit the amount in offline mode and credit it when online. Later, the user will be able to make transactions entirely offline, where the debit and credit will process without any internet connection as well.

While the new interface will function offline, the user will be required to add funds to UPI Lite in online mode with UPI AutoPay using additional factor authentication. The funds will be displayed on the home screen of the UPI app. The transaction limit will be up to ₹200, and the total on-device wallet amount will not exceed ₹2000.

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However, users will get options to enable, disable, and top up the UPI Lite only in online mode. It is to be noted that funds deposited in UPI Lite wallet shall bear no interest. While payments can be executed without UPI PIN, NPCI advises users to use a passcode or some authentication for security.

Furthermore, users will also receive a consolidated debit SMS at regular intervals for each transaction made. You can have multiple UPI Lite on-device balances, depending on the number of UPI apps you use to access one registered bank account. UPI Lite all is set to launch as a pilot with multiple apps and banks.

What do you think of the upcoming UPI Lite wallet for offline payments? Do let us know in the comments section below.