UPI vs UPI Lite: Transaction restrict, different key variations defined

UPI vs UPI Lite: United Payments Interface (UPI) and UPI Lite symbolize two aspects of digital cost programs. UPI, a complete platform, allows seamless transactions, linking a number of financial institution accounts, and provides a variety of companies. On the opposite hand, UPI Lite is a simplified model, catering to customers in search of primary performance. It’s like a primary cell phone with name and textual content capabilities. 

What is UPI?

UPI is a 24X7 instantaneous cost system that permits you to switch cash in actual time between two financial institution accounts.

What is UPI Lite?

 UPI Lite is an on-device pockets characteristic that permits customers to make real-time small-value funds.

“UPI and UPI Lite are both revolutionary in their own right. While UPI has transformed the digital payment landscape in India, UPI Lite is set to take it a step further by making digital transactions accessible to every Indian, irrespective of their internet connectivity. UPI Lite will give more wings to UPI transactions, expanding the reach and impact of digital payments. It’s not about one versus the other, but about how both can coexist to accelerate financial inclusion in our country,” stated Amit Nigam, Executive Director & COO at BANKIT

Difference Between UPI Lite and UPI?

UPI Lite differs from UPI in varied methods. Here are a few of the vital variations between UPI Lite and UPI:

Dr. Navneet Gupta, Founder and CEO of YPay stated that UPI Lite focuses totally on fund transfers and funds, omitting some superior options. “While UPI provides versatility, UPI Lite gives simplicity, making certain accessibility for all, no matter tech-savviness. Considering that characteristic telephones nonetheless represent 50% of the market, it will support funds the place web penetration is low,” said Navneet Gupta.

Moreover, in a country like India, where a significant portion of the population resides in Tier-3/4 cities and villages, UPI Lite can work wonders, he added.

UPI vs UPI Lite: Who can use it?

Customers of all UPI Member banks with NPCI can use UPI via TPAP applications like BHIM, Google Pay, Paytm, PhonePe, etc., or mobile banking apps of member banks.

UPI Lite feature has been enabled on the BHIM app and some other TPAPs like PayTM. Currently, customers of eight banks can use this facility.

UPI vs UPI Lite: How to check the transaction history?

UPI Lite customers receive an SMS daily containing the history of UPI Lite transactions carried out during the day from the bank. UPI users can keep track of their transactions through the transaction history option on the UPI mobile application

UPI vs UPI Lite: Transaction Limit

“The maximum amount that can be transferred in a day from a bank account via UPI is Rs. 2 Lakhs. A total of 20 transactions can be done from a bank account using UPI in a span of 24 hours. On the other hand, UPI Lite users can transfer a maximum of Rs. 4,000 in a span of 24 hours. There is no limit to the number of transactions done through UPI Lite, however, the maximum limit of a transaction is Rs. 200,” stated Mehul Mistry, Global Head – of Strategy, Digital Financial Services & Partnerships, Wibmo, a PayU firm

UPI PIN

A 4 to 6-digit PIN is obligatory for UPI transactions. However, you do not want a PIN to ship cash by way of UPI Lite, stated Mehul Mistry.

UPI vs UPI Lite: Sending cash

As per Mehul Mistry, one can ship cash P2P and do P2M funds utilizing each UPI and UPI Lite.

UPI vs UPI Lite: Receiving cash

With UPI one might obtain cash as effectively. However, with UPI Lite, solely debit out of your pockets is permitted.

Disclaimer: The views and suggestions made above are these of particular person analysts, and never of Mint. We advise buyers to examine with licensed specialists earlier than making any funding choices.

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Updated: 03 Oct 2023, 02:38 PM IST