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NPCI to launch ‘On-Device Wallet-UPI Lite for Small Value Transactions’ in Offline Mode

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NPCI set to launch UPI Lite for small value transactions in offline modeThe National Payments Corporation of India (NPCI) will launch On-Device Wallet i.e. ‘UPI Lite’ for UPI users which will enable small value transactions in an offline mode. UPI stands for (Unified Payments Interface).

  • This functionality enables transactions without additional factor authentication (AFA) or a UPI PIN (Personal Identification Number).
  • Designed by NPCI, it will be launched as a pilot with multiple banks and app providers in the next 10 days.

Limits in UPI Lite:

Upper Limit of payment transaction- Rs 200
Total limit of balance for an On-Device Wallet- Rs 2,000 at any point of time

Reasons behind this launch:

As per various studies, about half the UPI transactions have a transaction value of up to Rs 200, and about 75% of the total volume of retail transactions (including cash) in India are below Rs 100. Also, in January 2022, Reserve Bank of India’s (RBI) notified a framework for facilitating small value digital payments in offline mode. So, catering to both scenarios, this development has been made.

Key Points:

i.In the first phase, UPI Lite will process transactions in near offline mode that is debit offline and credit online and after that both transactions will be processed offline.

ii.When all parameters in the pilots will be successfully achieved then its full-scale commercial launch will be declared.

iii.It should be noted that the replenishment of funds i.e. funds allocation from user’s bank account to UPI Lite, will be allowed only in online mode with AFA or using UPI AutoPay.

  • NPCI has set a target of 1 billion UPI transactions daily in the next 3-5 years. 

Click Here for Official Notification by NPCI 

Recent Related News:

On January 27, 2022, the NPCI International Payments Limited (NIPL), international arm of NPCI, signed a Memorandum of Understanding (MoU) with TerraPay, the Netherlands- based global payments infrastructure company. This partnership will allow Indians with an active UPI (Unified Payments Interface) ID to receive real-time, international payments into their bank accounts via TerraPay’s fully regulated, secure, scalable and efficient channel.

About National Payments Corporation of India (NPCI):

CEO & MD– Dilip Asbe
Headquarters– Mumbai, Maharashtra
Products– RuPay, Immediate Payment Service (IMPS), National Automated Clearing House (NACH), Aadhaar Payment Bridge (APB) System, Aadhaar enabled Payment System (AePS), National Financial Switch (NFS), UPI, Bharat Bill Payment System (BBPS), and National Electronic Toll Collection (NETC)