What is UPI Lite X: Features, Transaction Limits, and Benefits

UPI Lite X is a revolutionary feature designed to make digital payments more accessible and seamless. It stands out as a unique extension of the Unified Payments Interface (UPI) ecosystem by allowing users to perform transactions even without an active internet connection.

This innovative functionality is particularly beneficial in areas with limited or unstable connectivity, making digital payments reliable for rural and remote residents.

What is UPI Lite X?

UPI Lite X is an enhanced version of UPI, specifically designed to enable offline payments. It leverages Near Field Communication (NFC) technology to facilitate secure and seamless payments. By simply bringing your device close to a payment terminal or another NFC-enabled device, you can authorise transactions without relying on mobile data or Wi-Fi.

Introduced in 2023 by RBI Governor Shaktikanta Das, UPI Lite X aims to bridge the digital payment gap in low-connectivity regions. It empowers rural and remote users to adopt digital payments, contributing to financial inclusion while maintaining ease of use and security.

UPI Lite X Limit

The transaction limit for UPI Lite X is set at ₹500 per transaction. This ensures that the feature is primarily used for small-value payments, making it ideal for everyday transactions like grocery shopping, public transport fares, and other low-value purchases. Additionally, the total balance that can be loaded into a UPI Lite X wallet is capped at ₹2,000.

How to Use UPI Lite X for Transactions?

1. Step 1: Download the App

Begin by downloading a UPI Lite X-supported app from your device’s Play Store. Popular UPI-enabled apps like BHIM or your bank’s app often support this feature.

2. Step 2: Register Your Account

Open the app and link your bank account. Ensure that your account is UPI-enabled and that you have set a UPI PIN. This step is essential to activate the payment feature.

3. Step 3: Enable UPI Lite X

Navigate to the settings or features section in the app and select the option to enable UPI Lite X. Accept the terms and conditions, then proceed to activate the feature.

4. Step 4: Select Your Payment Option

Once enabled, you can start making offline payments. Choose the “Tap & Pay” option in the app, enter the amount, and complete the transaction by tapping your device on the NFC-enabled payment terminal or soundbox.

Features and Benefits of UPI Lite X

1. Offline Transactions Made Easy

UPI Lite X allows you to make payments without an active internet connection, ensuring seamless transactions even in remote or low-connectivity areas. This feature is especially beneficial for small-value payments like buying groceries or paying transport fares.

2. NFC Technology

The use of NFC technology enables secure and efficient transactions. By simply tapping your device on an NFC-enabled terminal, you can complete payments without entering a UPI PIN, saving time and reducing hassle.

3. On-Device Wallets for Convenience

UPI Lite X integrates an on-device wallet with a cap of ₹2,000, ensuring quick and straightforward access to funds for offline transactions. This eliminates the need for real-time bank authorisation, speeding up the process.

4. User-Friendly Interface for Seamless Experience

UPI Lite X-supported apps provide an intuitive interface, making it easy for users to enable and use the feature. The simplified payment process ensures that even first-time users can navigate it without difficulty.

5. Low Battery Consumption for Longer Use

Unlike regular online payment features, UPI Lite X is optimised for low power usage. This ensures your device lasts longer, making it practical for extended use in areas where charging facilities might not be readily available.

Requirements to Access UPI Lite X

1. NFC-Enabled Devices

Both the sender and receiver must have NFC-enabled devices. NFC is crucial for facilitating secure and contactless transactions by allowing devices to communicate when in close proximity.

2. On-Device Wallets

Transactions with UPI Lite X occur between on-device wallets, not directly through bank accounts. Users need to load funds (up to ₹2,000) into their UPI Lite X wallet to enable seamless offline payments.

3. Device Compatibility

The device must support NFC technology to use UPI Lite X. Additionally, the payment app used should support the UPI Lite X feature. Ensure your app and device are updated to the latest versions for compatibility.

How does UPI Lite X Differs from UPI and UPI Lite?

Disclaimer

The information provided about UPI Lite X, its features, and usage is based on the latest available details. Please note that certain aspects may change as government policies and regulatory guidelines are updated. It is recommended to check with your payment service provider or official sources for the most current information.

Frequently Asked Questions (FAQs):

1. Can I use UPI Lite X for all types of payments?

UPI Lite X is designed for small-value payments, typically up to ₹500 per transaction. It is best suited for everyday expenses like groceries, transport, or small retail purchases. For larger transactions, regular UPI is recommended.

2. Are there any charges for using UPI Lite X?

Currently, there are no additional charges for using UPI Lite X. However, it’s always a good idea to confirm with your payment service provider for any updates on fees.

3. How secure is UPI Lite X?

UPI Lite X is highly secure, leveraging NFC technology for contactless payments and on-device wallets to minimise risks. Since it does not require an internet connection during transactions, it reduces the vulnerability to UPI fraud.

4. Can I use UPI Lite X for large transactions?

No, UPI Lite X is intended for small-value offline transactions. The maximum limit per transaction is ₹500, and the total wallet balance is capped at ₹2,000. For larger amounts, you should use regular UPI.