To recognize and encourage users to adopt UPI Lite, RBI has announced that they will increase the transaction limit to Rs 500. This means that users can now make UPI Lite payments up to Rs. 500 without having to enter their UPI PIN.
This limit was previously set to Rs. 200. The new transaction limit for UPI Lite is a welcome move for many users.
This will make it easier and faster to make small payments, and will also reduce the number of times users have to enter their UPI PIN. The move comes with the ability to conduct offline transactions using Near Field Communication (NFC) technology via UPI Lite.
Furthermore, RBI Governor Shashikanta Das has announced that there will be a conversational feature that will allow users to interact with a chatbot to make payments. The chatbot will ask the user a number of questions to verify their identity and then process the payment.
RBI’s press release reads: “With the goal of harnessing new technologies to enhance the digital payment experience for users, we propose (i) enable “Conversational Payments” on UPI, allowing users to join the chat with AI-enabled systems to make payments; (ii) introduce offline payments on UPI using Near Field Communication (NFC) technology via ‘UPI-Lite’ on-device wallet; and (iii) raise the transaction limit for small value digital payments offline from ₹200 to ₹500 within the general limit of ₹2000 per payment instrument.”
Shashikanta Das believes that these new initiatives will provide easy payments and attract more and more users to trust online payments.
The Governor of RBI mentioned: “These initiatives will further increase the reach and use of digital payments in the country.”
In conclusion, the increase in transaction limit for UPI Lite is a positive development for the digital payments ecosystem in India. It will make it easier for people to make smaller payments, helping to boost the economy.