The Unified Payment Interface (UPI) appeared in 2016 when the NPCI (National Payment Corporation of India) introduced a way for the country to make transactions without physical cash. Initially, the Indian Government introduced this payment service through their BHIM app, but later, services like Google Pay and PhonePe also started offering it. Everything was working well until people started facing internet connectivity issues.

However, as we know, internet connectivity is a prerequisite for any transaction through UPI. Initially, this problem was small, but they took action when NPCI discovered that thousands of transactions were failing due to network connectivity. On the occasion of Global Fintech Feat 2023, RBI Governor “Shaktikanta Das” introduced UPI Lite X, which allows transactions without needing the internet. This document will share everything you need to know about UPI Lite X.

Mastering UPI Lite X: Your Guide to Understanding and Using It

On September 7, RBI (Reserve Bank of India) Governor Shaktikanta Das introduced a new system for making payments through UPI called UPI Lite X. According to his statement, UPI users can now make payments up to ₹2,000 per day with an individual transaction limit of ₹500 without the need for the internet. This is especially useful for small transactions that do not require the remitter bank’s core banking system in real time. With UPI Lite X, people can receive and send payments without the internet in a fast manner.

Following this announcement, many banks, such as Bank of Baroda, HDFC Bank, and Axis Bank Ltd, started offering UPI Lite X facilities. You can find the entire list here. Now that you clearly understand UPI Lite X, you may be wondering how it works. UPI Lite X creates a specific wallet where you must add the amount you want to use for payment. UPI Lite X uses NFC (Near Field and Communication) to facilitate the transaction between two phones for receipts or payments.

And being a service through NFC, your devices must be close to each other for the transaction. Therefore, there is no scope for fraudulent activity. To make a UPI payment through UPI Lite X, both the receiver and sender devices must support NFC and enable the UPI Lite X feature. Tap the receiver’s device, and UPI Lite X will send money from the sender’s UPI Lite X wallet to the receiver’s UPI Lite X wallet. To get more clarity, note down these steps.

Enabling UPI Lite X

  1. Open the UPI app that you use.
  2. Locate and tap on the UPI Lite option.
  3. Accept the terms and conditions.
  4. Now, enter the amount you want to add.
  5. Select the bank to which you want to add money.
  6. Lastly, enter your PIN to process the transaction.

Using UPI Lite X

Note: Enable NFC on both the receiver and sender devices before proceeding. You can do that through Settings >> Connected Devices >> Connections >> Contactless Payments.

  1. Launch the UPI app on your phone.
  2. Then select the UPI Lite X option.
  3. Next, tap on the make payment option.
  4. Enter the amount you want to pay, and then tap Next.
  5. Now tap your device on your receiver’s phone.
  6. Following this, the transaction will be processed.
  7. That is it! In this manner, you can pay or receive without the internet.

Once you comply with these instructions, you will discover how much easier it is to make small-value transactions. Also, you can see that the payment problems for network connectivity issues are resolved. Of course, there is a limit on the amount you can pay through UPI Lite X, but it is an excellent support for NFC. However, even though this feature seems impressive, there are a few things that you need to consider.

Payments made through UPI Lite X are not reversible. Add funds to UPI Lite X Wallet only from a bank account linked to UPI. Above all, if you change your phone number, you need to disable UPI Lite X on your old phone and enable it on your new phone. With that set, you now have enough knowledge to use the all-new UPI Lite X. With this information, your small-value transactions can easily be facilitated. However, as it is new, be cautious while conducting transactions through it. If any user has queries, please ask them below.

Frequently asked questions

Q1. What are the charges for UPI Lite?

Ans. There are no fees to be charged for using UPI Lite X.

Q2. What is the difference between UPI and UPI Lite?

UPI is dedicated to traditional uses like sending and receiving money over the internet, whereas UPI Lite can be used without the internet using NFC.

Q3. Is UPI Lite safe?

Ans. Being an NFC-based service, there is no risk of fraud.

Q4. How do I cancel my UPI Lite?

Ans. You can cancel it by opening the UPI app, selecting UPI Lite, tapping on the three dots, and closing UPI Lite.