Paytm is one of the most popular digital payment platforms in India. It offers a variety of payment options, including Paytm Wallet, Paytm UPI, and Paytm UPI Lite. Paytm UPI Lite is a simplified version of the Paytm UPI payment system, designed for users who want a hassle-free and easy payment experience.

WHAT IS UPI Lite ?


UPI Lite

UPI Lite is a digital account designed to facilitate low-value transactions. This feature will make small ticket transactions easier and quicker. The maximum UPI Lite transaction limit is Rs 200. Paytm, a leading player in the market, has introduced UPI Lite which enables users to carry out transactions up to Rs. 200, with a maximum cumulative limit of Rs. 4000.

·         The UPI Lite app has a maximum balance limit of Rs 2000 at any given time.

·         A maximum of Rs 2000 can be added to the UPI Lite account twice daily.

·         This allows for a cumulative transaction limit of Rs 4000 in a day.

·         Users can make multiple transactions within the maximum UPI Lite transaction limit.

A user can load Rs 2000 in the UPI Lite app and utilize the available balance to conduct transactions until it is fully utilized. The maximum allowed value per transaction is Rs 200. Therefore, a user can make multiple transactions until the limit is reached. For example, a user may conduct 6 transactions worth Rs 200, 4 transactions worth Rs 150, and 20 transactions worth Rs 10 in a day, exhausting the UPI Lite transaction limit of Rs 2000. However, if the user requires further transactions on the same day, they may add another Rs 2000 to their UPI Lite account. In addition, UPI Lite streamlines the transaction process by eliminating the need to enter a 4 or 6-digit PIN.

To enable UPI Lite

  • User has to open his/her UPI App
  • On home screen of the App, user will get the option to enable UPI LITE. Click on the option
  • User reads and accepts the terms & conditions
  • User enters the amount to add in UPI LITE and select the Bank account
  • User enters UPI PIN
  • UPI LITE enabled successfully!

For making seamless transactions via UPI Lite

  • User opens the app
  • User chooses to pay.
  • User enters the amount
  • Money Sent Successfully without UPI Pin

Benefits of UPI Lite

  • Improved success rate for UPI transactions
  • Less infrastructure load on Remitter Bank CBS
  • Uncluttered Passbook for users
  • One click single factor authentication for UPI transactions of value less than ₹ 200

UPI Lite balance in case of change of Mobile Device

UPI LITE balance should be treated equivalent to cash and the user will be responsible for the balance loaded in LITE account. In case user changes the mobile device, user should disable the LITE account from old mobile device & then enable a new LITE account on the new mobile device. This shall ensure that the LITE balance lying in the older mobile LITE account is pushed back to user account.

In case user lost the device with the active LITE account and balance, user can approach their Bank for refund of balance in the bank account. Bank may perform necessary checks; post which bank may refund money to the user’s bank account .It should be noted that LITE balance will not be fetched in new mobile device if user changes the mobile device .

Also, in case user wants to change the mobile number linked with UPI, user should must disable the LITE account before changing the mobile number.

                                   

Need for UPI Lite

Launched in April 2016, UPI was perceived to become the keystone of digital payments. The transactional value and volume of UPI are exponentially rising. As per the January 2023 estimates of NPCI, the UPI transaction volume is above 8 million and worth Rs 12,98,726.62 crores.

UPI and UPI Lite are both exceptional payment systems that facilitate a seamless transaction process. Transactions involving everyday items such as groceries, milk, vegetables, and food are commonly regarded as low-value transactions.  UPI’s ability to efficiently handle a considerable load of these transactions is impressive. However, to make the process even smoother, NPCI has introduced UPI Lite. It is a compressed version of UPI that is designed to handle high-volume, low-value transactions that range from Re. 1 to Rs. 200. This innovation has improved the overall performance of the UPI system, allowing it to handle higher-value transactions more efficiently. Additionally, UPI Lite retains the convenience and speed of UPI while being more compact, providing users with an excellent payment experience. 

How Does UPI Lite Works?

Paytm, a pioneer in digital payment apps, has recently introduced UPI Lite as a new feature into the Paytm application. The purpose of this feature is to simplify small-value transactions and make them more efficient for users. With a transaction limit of Rs. 200, users can make quick and frequent payments without the need to enter a PIN or passcode for each transaction. This feature is especially useful for people who need to make multiple payments regularly, as it saves time and makes the process smoother.

Users can activate UPI Lite on the Paytm app by linking the bank account that supports this feature. Once the linking process is complete, users can add funds up to Rs. 2000, and a maximum of Rs. 4000 per day to their UPI Lite account. Transactions made through the UPI Lite account will be deducted from the UPI Lite account and not from the linked bank account. This will reduce the number of frequent debit entires in the bank passbook, resulting in a simplified record of transactions. It’s worth noting that every time a transaction is carried out through UPI Lite, an SMS notification will be sent to the user.

In conclusion, UPI Lite is a useful feature for people who need to make quick and frequent small-value transactions. It eliminates the need for entering a PIN or passcode each time, making the process faster and more convenient. By enabling UPI Lite through payment applications that support this feature, users can enjoy the benefits of digital payments without the hassle of traditional payment methods.

Advantages of UPI Lite

Here are some of the significant benefits of UPI Lite:

·         Less Clutter on Bank Passbook – When small-value transactions, which are frequent and high-volume, will be made using UPI Lite, there will be fewer transaction details on the bank Passbook. It will comprise only the major and top-up transactions done using UPI Lite. Hence, users can have a relatively clean and decluttered Passbook. 

·         Easy Small Value Transactions – This advantage of UPI Lite will cater to the daily transactional requirements of the common people. Small purchases ranging from Re 1 to Rs 200 that are a part of daily routine will become faster and more convenient.

·         No Cap on Number of Transactions – There is no cap on the number of transactions a user can make using UPI Lite. Since there is no restriction on the number of transactions, given the cumulative daily amount, a user can make multiple payments of a low amount. 

·         Use Without PIN – With UPI Lite, users are not required to enter a 4 or 6-digit PIN like they would with other payment methods such as debit or credit cards, or net banking.  This means that for small, regular transactions, users can avoid the hassle of entering a PIN.Top of Form