The National Payments Corporation of India introduced UPI Lite to enhance the digital payment experience and reduce transaction traffic across banks. UPI Lite enables users to carry out low-value transactions without entering their UPI PIN, and they can initiate payments directly from their digital wallet.
Paytm has also recently launched this feature on its platform. UPI Lite was launched by the Reserve Bank of India in September 2022 to simplify the UPI transaction process.
UPI Lite Use
- It allows users to conduct transactions of up to Rs 200 instantly without waiting for banks to confirm payments or adding UPI PIN.
- The daily UPI transaction limit does not apply to multiple small-value UPI payments.
- To use UPI Lite on Paytm, users need to add money to their Paytm wallet and set up UPI Lite by selecting the bank account that is eligible for it.
- They can specify the amount they wish to add to their UPI Lite account and validate their MPIN to create their account.
- Once the account is created, users can initiate payments with just one tap.
In addition to reducing clutter in bank passbooks, UPI Lite allows users to keep track of small transactions in Paytm's balance and history. In general, UPI Lite is an easy and efficient way to send low-value payments.