Recently, RBI governor Shaktikanta Das announced that now users can transact an amount upto 500 rupees instead of the previous 200 rupees without UPI pin for easy transaction via UPI Lite wallet. UPI Lite is an on-device wallet, which means it allows users to navigate the payments via the digital payment wallet.
The RBI governor said, this is an innovative method to enhance more seamless transactions by increasing the value from 200 rupees to 500 rupees. “These initiatives will further deepen the reach of digital payments in the country.” – said the RBI governor in the press conference.
The maximum limit of UPI Lite wallet sanctioned is 2,000 rupees. The main objective behind this is to encourage more adoption of UPI payments for faster, contactless, and reliable payments. Also, it was said about NFC (Near Field Communication) Technology by the MPC authority that, “To promote the use of UPI Lite, it is proposed to facilitate offline transactions using Near Field Communication (NFC) technology. This feature will not only enable retail digital payments in situations where internet/telecom connectivity is weak or not available, it will also ensure speed, with minimal transaction decline. Instructions to NPCI will be issued shortly.“
Overall, this method would further optimize the process of digital wallet payments making it even easier for people living in remote areas to complete smaller transactions without any hassle. It will be potentially transformative to carry on payments without starting from scratch.
