UPI Lite to launch on Paytm & others soon! Supported Banks, UPI vs UPI Lite & more

Find below all the details of UPI Lite; what is UPI Lite, what is the difference between UPI Lite vs UPI, what are UPI Lite supported banks and lastly, UPI Lite launch on Paytm, Gpay and other apps

by Vrushali.S Updated: 06 Feb, 2023, 13:39 IST
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The UPI Lite launch is imminent. Customers can do transactions of a maximum ₹200 using UPI Lite without having to enter their UPI Pin, needing an internet connection, or cluttering their bank statements. It’s a feature recently introduced by the National Payments Corporation of India (NPCI) to encourage innovation in UPI in the offline payments market. More details are below on what is UPI Lite, How to use UPI Lite, and lastly, UPI Lite launch.

UPI Lite to launch on Paytm & others soon! Supported Banks, UPI vs UPI Lite & more


As per a recent report, UPI payments apps such as Gpay, Phonepe, & Paytm are expected to launch UPI Lite on their platform within a month, expected before March-end of 2023. Note that while the UPI Lite feature launch is still yet to take place, the same is already supported by eight banks currently.


Which banks support UPI Lite?
  • Canara Bank

  • HDFC Bank

  • Indian Bank

  • Kotak Mahindra Bank

  • Punjab National Bank

  • State Bank of India

  • Union Bank of India

  • Utkarsh Small Finance Bank

What is UPI Lite? Explained in simple terms

Think of UPI Lite as a piggy bank, but a digital piggy bank (a digital wallet) that stays on your phone. You need to put some money (funds) in your piggy bank first which you can then use to buy things or transfer money to your friends or family without having to need an internet connection or a secret code.


In simple terms, here’s how UPI Lite works:
  • You register for UPI Lite on BHIM UPI

  • Your bank must support UPI Lite for the service to be useable

  • You transfer funds from your bank account to your UPI Lite wallet (you will get this feature to add funds to your UPI Lite wallet on the BHIM UPI app or soon on payments apps like Paytm & others. Also, a maximum ₹2000 can be added)

  • Once, the funds are added, they will reflect in your UPI Lite wallet

  • Now, to make any transaction lower than ₹200, all you need is your phone with an active mobile sim (the same that is linked to your UPI account)

  • To transfer funds, simply scan any QR Code, enter the UPI ID or number and the funds will be debited from your UPI Lite wallet without having to need an internet connection or UPI pin

  • You will get an SMS at the end of the day stating the total transaction amount you have done for the day


Have a look at this post by one of our dimers @abhishek012 to find our detailed steps to enable UPI Lite on the BHIM UPI app

Steps to enable UPI Lite on BHIM UPI app!


Difference between UPI Lite vs UPI:

Below is mentioned the difference between UPI vs UPI Lite.

UPI vs UPI Lite Differences

UPI

UPI Lite

Maximum per transaction limit is ₹5000 to ₹100,000 (1 Lakhs)

Maximum per transaction limit is ₹200

Total Transaction Limit per day up to 2 Lakhs

Total Transaction Limit per day up to ₹2000

An internet connection is required to send the payment to the receiver

No need of an internet connection to send the payment to the receiver

Entering your UPI Pin is mandatory to validate the payment

No need of entering your UPI Pin

UPI is a payments system that brings multiple banks under a single payment method for easier transactions

UPI Lite is a digital wallet service that gets stored on your phone device

Customers of more than 100 banks can use UPI to send payments

Currently only eight banks support the UPI Lite facility

You can send or receive funds to your UPI-linked bank account

Currently, you can only send payments from your UPI Lite wallet. All credited funds get directly sent to your bank account instead of your UPI Lite wallet.

You can track the transactions of all UPI payments in the app itself

In UPI Lite wallet, you will receive an SMS daily of all the transactions done by you during the day



In phase-1 of its rollout, debit payments can be made without internet connectivity. However, credit payments will be made into the account with the help of the internet.

In the future, UPI Lite is expected to become offline where both debit and credit payments can be processed without an internet connection.


Also Read: What are the UPI Transaction Limits by Banks, NPCI and PSP Apps in 2023?

Review Expert
Vrushali is a content & copywriter with 3+ years of exp in writing, researching & ideating content pieces. She writes articles across finance, tech, lifestyle, telecom, online shopping & travel. When not working, you'd find her scribbling designs.
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this is really good initiative, many time UPI fails due to network issue and too much hassle to pay small amounts using PIN

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Agreed✔💯
Crowdpuller Crowdpuller
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@abhishek012

Deal Cadet Deal Cadet
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Thanks for info .vu
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Welcome, and thanks for your comment!
Deal Cadet Deal Cadet
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So, will the money be credited to shop in real-time? If yes, using USSD or some other mean?
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Yes, the money will be credited to the receiver in real-time (similar to how our normal UPI transactions work) and I do not think it would be done through USSD. UPI Lite will work similarly to how our normal UPI works (scanning QR Codes, entering UPI number, etc), it is just that we won't need to have an internet connection or enter our UPI Pin to send payments since in the UPI Lite case, we are using a digital wallet that gets stored on our phone instead of debiting the amount from a bank account. 

Hope this helps. 
Deal Cadet Deal Cadet
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Okay. But still wondering, how my offline phone will communicate to receivers bank (in real-time)! 🤔 
+ It doesn't need UPI pin, <Rs200/-.
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Good question @Blessed So, the entire procedure will work on SMS networks in internet-free digital payments.


Saket Modi, an original security contractor of the BHIM UPI app had said the following - "the SIM card has certain unique cryptographic keys which UPI uses to hard bind your phone with its server, so that even if you switch mobiles, all you have to do is use the same sim card, and you are good to go to use UPI on your new device."


Hope this answered your question

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