Reserve Bank of India (RBI) Governor, Shaktikanta Das, recently launched three major digital payment initiatives at the Global Fintech Fest 2022. The three digital payment initiatives launched by RBI are RuPay Credit Cards on Unified Payments Interface (UPI), UPI Lite and Bharat BillPay Cross-border bill payments.
To speed up and simplify the Unified Payments Interface (UPI) low value payments, Reserve Bank of India (RBI) Governor Shaktikanta Das launched UPI Lite on September 20, 2022. UPI Lite is an on-device wallet feature that will allow users to make real-time small value payments up to Rs 200 without using a UPI PIN. For now, only debits are allowed to your wallet and all credits for UPI Lite, including cashbacks, will go straight to your bank account.
Check out the UPI Lite’s features:
What is UPI Lite?
Simply put, UPI Lite is an “on-device wallet”. Customers will need to add funds from their bank accounts to the app wallet to use UPI Lite. As an “on-device wallet”, users do not need the Internet for real-time payments.
What is the transaction limit on UPI Lite?
UPI Lite is designed for small value transactions. As a result, the upper limit of a UPI Lite transaction has been set at Rs 200, according to a press release issued by the National Payments Corporation of India (NPCI). Users do not need a UPI PIN for payments under Rs 200 through UPI Lite, according to the NPCI website.
The press release states that the total UPI Lite balance limit for an on-device wallet will be Rs 2,000. Users can also make unlimited transactions in one day using UPI Lite, Union Bank of India said in a press release released on September 20, 2022.
Which bank users are eligible to use?
According to NPCI’s press release, the UPI Lite function has been enabled on the BHIM app. Currently, eight banks are using the UPI Lite feature, including Canara Bank, HDFC Bank, Bank of India, Kotak Mahindra Bank, Punjab National Bank, Union State Bank of India and Bank of India. Utkarsh Small Finance, mentioned by NPCI.
Can you use UPI Lite without Internet?
In the first phase, UPI Lite will process transactions in an almost offline mode, i.e., debits (payments) can be made without an Internet connection and credits to the account Accounts will be made online. However, there are plans to take UPI Lite offline in the future, where customers will be able to process transactions – both debit and credit – in full offline mode, NPCI added.
UPI Lite: How to add money?
Remember that you will only be able to add funds to the UPI Lite wallet in online mode (i.e. internet connection will be required) with Additional Factor Authentication (AFA) or using the user-registered UPI AutoPay sign in online mode with AFA, follow to NPCI. If you deactivate UPI Lite, the unused balance will be credited to your bank account, according to the NPCI website.
What you need to know before using UPI Lite?
UPI Lite transactions, except for deposits, will not show up on your bank statement or passbook. Customers will receive a daily SMS containing a history of UPI Lite transactions made during the day, from the bank, in accordance with the NPCI.
Any dispute regarding the activation, reloading or deactivation of UPI Lite should be referred to and handled by the issuing bank,” according to the NPCI website.
How will this benefit users?
“UPI Lite will provide users with a convenient solution for faster and easier low value trading,” said NPCI. With UPI Lite, customers no longer have to lose money. This will give customers an added advantage by providing almost zero transaction errors even at peak times.
Other two initiatives launched by RBI:
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- Linking RuPay credit card with UPI-
National Payments Corporation of India has announced the feature of linking RuPay credit cards with Unified Payments Interface (UPI). By linking a RuPay credit card on UPI, customers can now benefit from a greater opportunity to use their credit cards while merchants will benefit from increased consumption by becoming a merchant. part of the credit ecosystem with the acceptance of credit cards using QR codes, NPCI said in a statement.
RuPay credit cards will be linked to a virtual payment address, also known as UPI ID, and directly enable secure payment transactions. Customers of Punjab National Bank, Union Bank of India and Bank of India will be the first to use RuPay credit cards on UPI with the BHIM app. Until now, only debit cards were allowed to be linked to UPI logins. With the new system, RuPay users will benefit from using their credit cards to pay UPI at retail stores.
- BBPS access to cross-border –
According to the central bank circular last week, it has decided to allow remittances received under the Rupee Withdrawal Agreement (RDA) to be transferred to the KYC compliant bank account of the debtor (recipient). Benefits) through Bharat bill payment system. “ BBPS”, under certain conditions. This step allows the acceptance of payments arriving across the border that will help Non-Resident Indians (NRIs) pay utilities, education and other bills on behalf of their family in India.
Simply put, unlike before, when foreign funds received under the Rupee Withdrawal Agreement (RDA) can be transferred to the recipient’s KYC compliant bank account through a such as NEFT and IMPS, this decision by RBI will allow direct bill payment in India. Through BBPS for NRIs and avoid unnecessary delays in depositing funds into their accounts in India to make such payments.