Good News For UPI Users: RBI Gives Big Relaxation; No Charges For Paying Extra Using Wallet Up To THIS Amount - Details Here

New Delhi: The Reserve Bank of India (RBI) has raised the UPI Lite wallet limit from Rs 2,000 to Rs 5,000. This increase is part of new regulations aimed at making offline transactions more seamless. Along with the wallet limit hike the RBI has also doubled the upper transaction limit for UPI Lite under the offline framework. It has been raised from Rs 500 to Rs 1,000 per transaction.

The RBI circular has been issued under the authority of Section 18 in conjunction with Section 10(2), both of which are part of the Payment and Settlement Systems Act, 2007.

The RBI has updated the offline framework of the UPI Lite network by improving security measures in a circular issued on Wednesday, the central bank raised the transaction limit under UPI Lite from Rs 500 to Rs 1,000. However, the total limit for transactions at any given time remains Rs 5,000. Previously, the offline framework allowed a maximum of Rs 500 per transaction with a total limit of Rs 2,000 for any digital transaction under this system.

What is UPI Lite and How Does It Work Offline?

An offline payment refers to a transaction that doesn’t need an internet or telecom connection to process. UPI Lite transactions are considered offline because users don’t need to enter a UPI PIN to complete a transaction on their mobile phones. Additionally, transaction alerts are not sent to users in real-time.

Apps like Google Pay and PhonePe offer UPI Lite services to their users but currently users have to manually load their wallets for transactions. To make this process easier, the National Payments Corporation of India (NPCI) is developing an auto top-up feature, which will eliminate the need for manual loading.

How to Set Up a UPI Lite Account on Google Pay:

- Download and open the Google Pay app.

- Tap on your profile picture at the top right and select the "UPI Lite" tab.

- Enter the amount you wish to add to your UPI Lite wallet.

- You can add a maximum of Rs 5,000.

- Enter your UPI PIN to complete the process.