Mumbai, August 10: The Reserve Bank of India (RBI) on Thursday raised the transaction limit of UPI Lite from Rs 200 to Rs 500. The news was announced by RBI Governor Shaktikanta Das who also said that the Reserve Bank of India has decided to keep the policy rate unchanged for the third time in a row. It must be noted that UPI Lite was introduced by the National Payments Corporation of India (NPCI) and RBI in September 2022.

UPI Lite is a simplified version of the original UPI payment system. "RBI to allow offline payment of UPI by using near-field communication; raises payment limit via UPI lite to Rs 500 from Rs 200," Das said while making the announcement. The main purpose of UPI Lite is to help users to conduct small-value transactions seamlessly so that they don't face the occasional processing failures that they experience while banking. RBI Repo Rate Update: Reserve Bank of India Maintains Pause for Third Time in a Row; Keeps Repo Rate Unchanged at 6.5%, Announces Governor Shaktikanta Das (Watch Video).

While the UPI Lite Transaction limit has been raised it's important to understand how UPI Lite is different and how one can use it. The major USP of UPI lite is the fact that it is unlike regular regular UPI transactions. While regular UPI transactions have a daily cap of Rs 1 lakh, UPI Lite transactions are capped at Rs 500 per transaction.

How to Use UPI Lite:

Earlier, UPI Lite transactions were capped at Rs 200. Besides RBI also said that they will be introducing offline payments in UPI using near-field tech via UPI Lite. Another feature of UPI Lite is the fact that users can make real-time small-value transactions without having the hassle of using a UPI pin, which is mandatory while using regular UPI. Users can use UPI Lite on Gpay, Paytm, PhonePe etc.

(The above story first appeared on LatestLY on Aug 10, 2023 12:23 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).