UPI Lite- An Offline Mode Of Digital Transaction

Since the digital mode of transaction was introduced before the world, people have long forgotten the traditional method of paying with cash. Seeing such an inclination of the people, the National Payments Corporation of India (NPCI) has decided to upgrade the services of digital wallets.

Till now, all people have been using the Unified Payments Interface, better known as UPI, for all digital transactions or payments. However, now that NPCI has announced UPI Lite, that is a lighter version of the UPI. According to the claims made so far, its functionality is somewhat similar to PayTM, Mobikwik, and other e-wallets.

Initially, the user can process any transaction up to Rs 200. You can also store money in your wallets, make small-value transactions without using the internet, and do many more things.

What’s The Need Of UPI Lite?

Before understanding the need, you must get complete knowledge about UPI Lite. It is an on-device wallet that you can use on your mobile phones to make small-scale transactions offline. These transactions will be done via the money you have put in the UPI wallet.

So unlike the previous method in which you needed an excellent online internet connection, you will be able to make emergency payments. No other digital wallet in the country has yet offered offline services. So the offline mode usage for even small-scale payments can help a lot of people.

When Can You Expect The Stable Version Of UPI Lite?

Since the project is huge and the first of its kind, prior testing is going on. Thus the National Payments Corporation of India has decided to roll out a pilot project that will be in partnership with numerous banks along with application providers.

Once the testing gives successful results, NPCI plans a commercial launch of UPI Lite. However, there is no official date given for the launch yet. Nevertheless, through various speculations, it estimation says that people will be able to take advantage of this digital wallet by the second quarter of this year.

Key Features And Working Of UPI Lite

Since it has not been in commercial use yet, the actual functionality is yet to be discovered correctly. However, the pilot version allows the user put Rs2,000 in the wallet. It is the maximum value of money that the wallet can have.

Another notable factor is that the functionality will not be online entirely initially. Instead, it will be partial offline services for the users. For instance, money debiting will take place in offline mode via UPI Lite wallet. But, on the other hand, the mode will still stay online for the credited money.  

NPCI has also stated that you need not put the UPI PIN each time you choose to make a payment. Besides this, NPCI also said that such UPI applications would use the funds you stored in the UPI Lite wallet if the transaction is either less than or equal to Rs 2000.  

If this has become a cause of worry for you, you will be able to disable this function through a designated application any time you desire.

Essential Things You Must Know About UPI Lite Services

1. Digital Cash Facilities

Digital cash has been one of the most helpful modes of payment for people. Since the UPI Lite is also a digital wallet, it does help you carry digital cash with you. However, the astonishing factor remains its function to let you make the payment offline.

Thus, you can make an online payment if you have a solid internet connection. And if you do not have the connection or are in an emergency when you can’t access the internet, the offline mode will help you. Though in the pilot version, there is a limit of transactions.

2. Registration Of UPI Is Must

Before using the UPI Lite version, you need to be a registered user of UPI itself. As the UPI Lite is the lighter version, its origin still traces back to the UPI. Thus, you cannot expect it to work individually without ensuring the authenticity of the user. A UPI non-registered user cannot avail of the service of UPI Lite.

3. Not All The Banks Are Valid

This one factor may take a lot of people by surprise. It is because almost all digital wallets accept most banks. Even the UPI itself is connected to a plethora of banks. But when it comes to UPI Lite, this is not the case.

As the functionality of the UPI Lite is pretty different from others, not all banks can support it, primarily offline transactions. It is based on the RBI’s or Reserve Bank of India’s framework for all its small digital transactions without internet.

Hence, if we’re expecting that all the banks you connected to the previous digital banks will be available here, you may be disappointed. However, you may find other banks connecting to it after release.  

4. NPCI Can Terminate The Account

Another feature that makes it stand out among the other digital wallets is the termination policy. If the National Payments Corporation of India detects any inactivity in the account, it holds the right to terminate it.

5. Transaction Details

 Just because it differs in functionality, it does not mean you will not get the basic information regarding the transaction details. For instance, all the reversal or refunds of any funds will show up in the user’s valid bank account. These details update by themselves every single day.

You will also receive SMS at least once a day for all the transaction completer via UPI Lite. So you can hold the records of any transfer of money through this.

Conclusion

UPI Lite has gained a lot of attention due to its offline transaction feature. However, it is still yet to be introduced officially after the successful trials. Nevertheless, after its launch, it will solve many issues people had to face previously.