The number of UPI payment transactions has been increasing rapidly in India. Initially, it was just available in India, but nowadays, it can also be accessed outside of India. UPI is a revolutionary financial technology product created by the National Payments Corporation of India (NPCI). The BHIM app, one of the many UPI apps available in India, is also a part of NPCI’s works.

At the Global Fintech Fest 2022, which occurred on September 21, NPCI formally launched the UPI Lite. In simpler terms, UPI Lite is a virtual balance stored on the user’s device, sourced from a bank account. The BHIM app is already equipped with this feature, and more apps will soon have it. 

UPI Lite is an amazing platform that revolutionizes transferring and receiving money. It is a fast, secure, and reliable digital payment system that can be used for various transactions. 

With UPI Lite, you can send and receive money quickly and easily with just a few taps of your phone. This comprehensive guide will help you start with UPI Lite, so you can enjoy its features immediately.

From setting up your account to using its features, this guide will provide you with all the information you need to get started. With UPI Lite, you’ll have a powerful digital payment tool at your fingertips, allowing you to make transactions easily.

Let’s explore how UPI Lite can make your transactions easier and more convenient.

What is UPI Lite?

UPI Lite is a variant of UPI that works similarly but has some significant differences. It is designed for frequent, low-value payments, and instead of being charged directly from a bank account like with UPI, it will be taken from a virtual wallet in which the user will store money when they activate UPI Lite. Additionally, there is no need to input a UPI PIN before making a payment.

One of the major advantages of UPI Lite is that it eliminates the need to print out or go through a long list of small transactions. These are everyday purchases such as groceries, juice, cigarettes, and snacks, which won’t appear on the passbook or statement. UPI’s widespread availability has frequently been criticized for the lengthy passbooks and statements users have to sort through to locate certain transactions. By introducing UPI Lite, NPCI is addressing this issue by ensuring that only deposits from the bank to the wallet are visible on the passbook or statement.

UPI Lite is a simple, easy-to-use mobile app that allows you to send money to others and make cashless transactions. It uses digital payment technology to connect your bank account to another bank account. It is a feature of the Unified Payments Interface (UPI). It allows you to make instant money transfers between bank accounts. It is a very convenient digital payment system. 

When you use UPI Lite to make or receive a digital payment, the bank or other institutions involved in the transaction process your request and transfer the money instantly, since it uses the internet for communication, it is an efficient and fast payment solution that can be used across all banks.

UPI Lite is quite similar to a Digital Wallet, but with the Lite wallet, you can send and receive money to friends and merchants, in addition to the payment of any UPI ID. The UPI Lite option allows you to store up to two thousand rupees and make payments of wallet money by using a UPI ID, QR code, or mobile number, with a minimum of one rupee and a maximum of two hundred rupees. 

When you pay less than two hundred rupees, UPI Lite will be presented as an option. Although it does not ask for your UPI PIN before making a payment, it does not mean it is less secure. Opening the BHIM app will require your authentication, regardless of the UPI Lite transaction.

We gave the QR code scanner a tap to ensure it was secure before putting it in the BHIM app PIN. However, the UPI Lite wallet choice was unavailable since we hadn’t logged into the BHIM app and only had the UPI option. UPI Lite is much like wireless payments on credit and debit cards, where payments of up to Rs 2,000 can be made without entering a PIN. UPI Lite is being offered as a convenience to users, and with its wider implementation on additional apps, people should benefit from it.

Please be aware that UPI Lite is designed to operate without an internet connection, though this functionality has not yet been activated when composing this guide.

Benefits of UPI Lite

There are many benefits of using UPI Lite in your day-to-day banking transactions. Some of them are listed below: 

• It is easy to set up and use. You can download the app and create your account within minutes. 

• It is a safe, secure, and reliable digital payment method with fraud detection and prevention features. 

• It allows you to make transactions without access to a computer. 

• It allows you to send and receive money from anyone with a bank account. 

• It offers a wide range of payment options. 

• It is an inexpensive payment method with low or no transaction charges.

Setting Up Your UPI Lite Account

The first step towards using UPI Lite is to set up your account. To do this, you need to download the UPI Lite app and create an account. Once you have downloaded and installed the app, follow these steps to create your account. 

  • Tap on Sign Up, select your language, and enter your mobile number. 
  • Enter your name, password, and security question. 
  • Select the bank account you want to use with UPI Lite. 
  • You will receive an OTP on your mobile to confirm the account. 
  • Enter the OTP and then select Yes to confirm that the mobile number you entered earlier is correct. 
  • Enter your address and then tap Next to complete the account creation.
  •  Your UPI Lite account is now ready to be used.

Set up UPI Lite on the BHIM App

  • Begin by downloading and installing it from either Google Play Store (for Android) or App Store (for iOS). 
  • Log in or create an account using your bank information and add the account you will use for UPI transactions. 
  • Find and click the “UPI Lite” banner on the home screen. 
  • Read the information provided, followed by clicking the Next button three times and clicking the “Enable Now” button. 
  • After that, you will be prompted to add up to Rs 2,000 to your UPI Lite wallet. 
  • Enter the amount, up to the maximum of Rs 2,000, and select the bank account you wish to use (if you have multiply available).

Use UPI Lite on BHIM APP

  • To use UPI Lite on the BHIM application, the user should first login with the password via fingerprint authentication. 
  • Scan the QR code and enter the payment amount (limited to Rs 2000 or less for Lite). 
  • Add remarks or comments is optional, after which the user needs to press Confirm to finish the transaction.

Using UPI Lite Features

After setting up your UPI Lite account, you can use its various features to make cashless and digital transactions. You can use the Send Money feature to send money and make payments. To receive money, use the Receive Money feature, and to make cashless transactions, use the UPI/Pay feature. 

These features can be used to make other types of transactions as well. For example, you can use the Contacts feature to send money to someone you have saved in your contacts.

Understanding UPI Lite Security

When it comes to digital payments, the security of the payment method is a primary concern for most people. This is why UPI Lite comes with advanced security features that ensure your money stays safe and secure. Some of these features include: 

  • Authentication and verification – Authentication is used to verify the user’s identity by prompting a security code. 
  • Two-factor authentication – An additional security feature that requires you to enter a password and a security code. 
  • Fraud detection and prevention – Utilizes algorithms to detect and prevent fraudulent or suspicious activity. 
  • SSL encryption – Uses a security protocol to protect communication between two computers.

Troubleshooting Common UPI Lite Issues

As with any technology, it is possible to encounter problems or errors while using it. If you are encountering issues while using UPI Lite or want to know more about its various features, you can visit the Help section in the app. Here, you can select the problem or feature you are having issues with, and the UPI Lite app will provide you with possible solutions and troubleshooting advice.

Exploring UPI Lite Payment Options

As mentioned earlier, UPI Lite allows you to make payments to other people using their bank account numbers. Depending on the situation, you can make these payments using a few different payment options. Some of the payment options you can use are: 

  • Sender’s Name: You can enter the name of the person you send the money. 
  • Sender’s Mobile No.: You can enter the mobile number of the person you send money to. 
  • Sender’s Account No.: You can enter the bank account number of the person you send money to.

Tips for Using UPI Lite

Here are a few tips to keep in mind while using UPI Lite. 

  • Switch to the Advanced Mode – While you can use the Standard Mode to make payments or receive money, you can use the Advanced Mode to customize your account and make changes to it. 
  • Keep Your Mobile Safe – It is important to keep your mobile device secure. To do this, it is best to protect your device with a PIN, password, or fingerprint. 
  • Use the Notification Settings – The notification settings in the UPI Lite app allow you to receive notifications for all transactions or a few specific ones. 
  • Send and Receive Money With Ease – UPI Lite allows you to send and receive money easily. All you need to do is enter the receiver’s account number at the end of the transaction, and they will get the money in their account within seconds.

UPI Lite Resources

Here are a few resources you can use while using UPI Lite. 

  • UPI Lite App – The UPI Lite app is available on Google Play Store and Apple App Store. 
  • UPI Lite Help – The help section in the app can help you troubleshoot issues and understand features better. 
  • UPI Lite FAQs – If you still have trouble using UPI Lite or have a question about the app, you can refer to the FAQs section. 
  • UPI/IMPS – You can visit the website if you want to know more about UPI and IMPS.

UPI Lite FAQs

Here are a few questions that people often ask about UPI Lite.

  1. Can minors use UPI Lite?

UPI Lite is meant for adults and is not suitable for minors. Therefore, minors cannot use UPI Lite. 

  1. Can a non-resident Indian use UPI Lite? 

Yes, non-resident Indians can use UPI Lite to make payments and receive money. They can use their mobile number or email address as their UPI id. 

  1. Can I use UPI Lite to send money to someone with a different bank account? 

Yes, you can use UPI Lite to send money to anyone with a bank account. You need to enter their account number to make the transaction. 

  1. Can I receive money if I don’t have an account with the bank of the sender? 

Yes, you can receive money even if you don’t have an account with the sender’s bank. You must share your UPI ID or mobile number to receive the money.

  1. What are the benefits of using UPI Lite?

The main advantages of opting for UPI Lite are the ability to pay up to Rs 200 without needing to enter a UPI PIN and the fact that these transactions will be displayed in your bank passbook. Additionally, you can store up to Rs 2,000 in your UPI Lite wallet. 

  1. What is the maximum amount I can pay with UPI Lite?

Using UPI Lite, you can make payments of up to Rs 200 and the money will be deducted from the UPI Lite wallet which can hold a maximum of Rs 2,000. 

  1. Do I need the internet to use UPI Lite?

Yes, UPI Lite, like the regular UPI, needs you to scan and pay, so having a good internet connection is essential. 

  1. Can I use UPI Lite on a feature phone?

At the moment, UPI Lite is only available on the BHIM app, so it can only be used on Android and iOS devices.

  1. Is it secure to use UPI ID?

Yes, UPI Lite is secure to use. Besides not having a UPI PIN, the BHIM app necessitates you to enter a pin or fingerprint authentication before opening the app or accessing any delicate setting choices. 

  1. What apps can access the UPI Lite feature?

As of September 2022, only the BHIM app provides the UPI Lite feature. In the near future, other apps like Google Pay and Phonepe will also get the UPI Lite. 

  1. What is the highest amount I can put into the UPI Lite wallet?

You can store up to Rs 2,000 in the UPI Lite wallet and pay up to Rs 200 per transaction. The amount you add to the wallet will show in your passbook or statement, however the UPI Lite transactions won’t show. 

Be sure to turn on the new UPI Lite feature on the BHIM app and make the most of it. Doing this will let you make payments far more quickly. As soon as the feature is available on other UPI apps like Google Pay and PhonePe, it will become more and more popular.

Conclusion

With UPI Lite, you can make seamless digital transactions and send and receive money quickly and easily. This convenient mobile app is simple to use and can be used by anyone with a bank account. Whether you want to send funds or request money, UPI Lite is a great tool to use. 

This handy digital payment system allows you to make transactions quickly and easily, making it a great solution for everyday banking. So what are you waiting for? Get started with UPI Lite today and experience the benefits of digital banking for yourself.

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