Introducing UPI Lite X: Distinguishing Features and Key Differences from UPI and UPI Lite Explained

Reserve Bank of India

Introducing UPI Lite X: A Game-Changer in Offline Payments

The Reserve Bank of India (RBI) has unveiled a groundbreaking feature, UPI Lite X, allowing users to transact money without needing an internet connection. This innovation was presented at the Global Fintech Fest 2023.

What is UPI Lite X?

UPI Lite X is a revolutionary feature that empowers users to initiate transactions in places with zero connectivity, like underground stations or remote areas. Essentially, it lets users transact money while being entirely offline.

The Evolution from UPI Lite to UPI Lite X

Building upon the success of UPI Lite, the RBI introduced UPI Lite X for offline payments. This feature is designed for areas with poor connectivity. To use UPI Lite X, users need a device compatible with Near Field Communication (NFC). Notably, UPI Lite transactions are swifter than many other payment methods.

Understanding UPI and UPI Lite

  • UPI (Unified Payments Interface): A 24/7 instant payment system, UPI facilitates real-time money transfers between two bank accounts. It operates over the Immediate Payment Service (IMPS) infrastructure.
  • UPI Lite: Designed for small-value transactions below Rs 500, UPI Lite is an ‘on-device wallet’ feature. It allows users to make real-time payments without entering a UPI PIN.

Key Differences Between UPI Lite, UPI, and UPI Lite X

  1. Transaction Method:
  • UPI & UPI Lite: Transactions can be done remotely by scanning a QR code or using the recipient’s UPI ID.
  • UPI Lite X: Requires both sender and receiver’s devices to be nearby.
  1. Payment Mode:
  • UPI: Directly transfers money between bank accounts.
  • UPI Lite: Transfers money from the sender’s on-device wallet to the recipient’s bank account.
  • UPI Lite X: Uses NFC to transact between on-device wallets, eliminating the need for internet.
  1. Transaction Limits:
  • UPI: Maximum transfer limit of Rs 2 Lakhs per day.
  • UPI Lite X: Maximum single transaction limit is Rs 500, with a daily cap of Rs 4,000.

Other Noteworthy UPI Features Introduced at the Fintech Fest

  • UPI Tap & Pay: Users can now tap NFC-enabled QR codes at merchant locations for payments, enhancing the traditional Scan and Pay method.
  • Credit Line on UPI: This feature streamlines the process of availing credit lines from banks via UPI, promoting a more digital banking ecosystem.
  • Hello! UPI – Conversational Payments: Users can transfer money using voice commands in both Hindi and English, making payments more accessible to a broader audience.
  • BillPay Connect: A nationalized number for bill payments across India, allowing users to fetch and pay their bills with a simple message or a missed call.

With these advancements, the RBI continues to foster a more inclusive and digital financial ecosystem in India.