Unified Payments Interface (UPI) is being seen as a potent way to make low ticket payments faster and in a simpler way. The service was launched by Reserve Bank of India (RBI) Governor Shaktikanta Das on Tuesday. UPI Lite is an on-device wallet feature that will allow users to make real-time small-value payments not exceeding Rs 200. The users will be able to make transactions without having the need to use UPI PIN.
Why is UPI Lite important?
- UPI Lite is likely to reduce the burden on the banking system.
- The number of failed transactions will likely get reduced.
- The transaction settlement cost is expected to come down
- The transaction details will not be reflected in bank accounts and passbook
- Bank Passbook / The statement will not have details of day-to-day small expenses.
- In all UPI transactions, over 50 per cent transactions are low ticket and less than Rs 200.
- UPI transaction will be possible even without internet.
- It will be possible to put up to Rs 2000 into the UPI Wallet.
- UPI Lite will allow transactions up to Rs 200.
- No pin will be required to execute transactions.
- If the ticket size of transaction is lower than Rs 200, the transaction will have to be done through UPI Lite
- There will be no charges on it and all banks will offer the facility
- With UPI Lite, the transaction could be made on another mobile number, through QR code or two another UPI Id.