What is UPI LITE X
Users can now initiate and complete transactions even in locations with no connectivity, such as underground stations, distant areas, etc., This functionality allows users to send and receive money while fully offline.
“Building on the success of UPI LITE feature, the RBI Governor launched UPI LITE X for Offline payments. Through this feature, users can now both send and receive money whilst being completely offline, therefore, allowing users to initiate and execute transactions even in areas with poor connectivity, such as underground stations, remote areas, etc. UPI LITE X will be accessible to anyone with a compatible device that supports Near Field Communication (NFC). UPI LITE payments are faster than other payment methods, as they require less time to process the transaction,”stated a press release from the National Payments Corporation of India (NPCI).
How is UPI Lite X different from UPI Lite and UPI? Read on to find out.
What is UPI LITE
UPI LITE is a payment solution that leverages the trusted NPCI Common Library (CL) application to process low value transactions that have been set at below Rs 500. It is an ‘on-device wallet’ feature that will allow users to make real-time small-value payments without using a UPI PIN.
What is UPI?
UPI is a 24*7 instant payment system that allows you to transfer money in real time between two bank accounts. UPI is built over the Immediate Payment Service or IMPS infrastructure, according to the NPCI website.
Here a few key differences between between UPI Lite and UPI.
Difference in transaction
When conducting a UPI or UPI Lite transaction, the recipient does not have to be physically present and could be in any cities to accept the funds. Instead, the transaction can be completed by scanning the QR code or by using the recipient’s UPI ID. However, such transactions using UPI Lite X are not possible as this needs both the sender and the receiver’s devices being in close proximity to one another.
Difference in payments
When using UPI, money is sent instantly from one bank account to another. UPI Lite, on the other hand, transfers money from the sender’s on-device wallet or UPI Lite account to the recipient’s bank account.
Transactions using UPI Lite X would take place using NFC between the sender’s on-device wallet and the receiver’s on-device wallet, eliminating the need for internet access because the transaction would take place between on-device e-wallets rather than bank accounts.
Difference in maximum limit
The maximum amount that can be transferred in a day from a Bank account is Rs 2 Lakhs in case of UPI. the maximum limit of a single transaction is Rs 500, while the maximum limit in a day is Rs 4,000.
Here is a look at a few other features and products related to UPI that were launched during the Fintech Fest.
UPI Tap & Pay
Users now have the option to pay by simply tapping NFC-enabled QR codes at merchant locations, in addition to the traditional Scan and Pay method. The RBI Governor also established UPI Tap & Pay in a key move to increase the usage of Near Field Communication (NFC) and QR code technologies.
Credit Line on UPI
According to the press release, “This new offering enables pre-sanctioned credit lines from banks via UPI and will revolutionize customer access to credit, fostering a more streamlined and digital banking ecosystem. With this, the process of availing, connecting, and utilizing credit lines will be significantly expedited, driving economic growth and progress.”
Hello! UPI – Conversational Payments on UPI
To transfer money, users only need to issue vocal commands, followed by their UPI PIN, to complete the transaction. The Bhashini program – AI4Bharat at IIT Madras and NPCI have collaborated to establish a Hindi and English payment language mechanism.
The majority of Indians who are proficient in their native tongues will have greater access to payment options thanks to this extension, which will be especially helpful to senior persons and others without much digital experience.
BillPay Connect – Conversational Bill Payments
“BillPay Connect – Conversational Bill Payments: With BillPay Connect, Bharat BillPay introduces a nationalized number for bill payments across India. Customers can now conveniently fetch and pay their bills by sending a simple ‘Hi’ on the messaging app. Along with this, customers without smartphones or immediate mobile data access will be able to pay bills by giving a missed call,” as per the press release.
