The National Payments Corporation of India (NPCI) introduced the United Payment Interface (UPI) back in 2016. More recently, the organisation introduced UPI Lite for making low-value transactions safer and faster. It is an on-device wallet feature that enables users to perform real-time low-value transactions without using a UPI PIN as is the case with the regular UPI transactions. Also Read - Google Play to now support UPI Autopay for subscription-based purchases in India
At the moment, the UPI Lite functionality is enabled on the BHIM app and it is available to customers of just eight banks, which includes Canara Bank, HDFC Bank, Indian Bank, Kotak Mahindra Bank, Punjab National Bank, State Bank of India Union Bank of India and Utkarsh Small Finance Bank. Also Read - How to activate PhonePe UPI using Aadhaar: A step-by-step guide
Using UPI Lite is simple. First you set an e-wallet within the BHIM app. This e-wallet, that is, UPI Lite, is linked to your bank account. You then transfer money from your connected bank account to your UPI Lite e-wallet. Thereafter, this balance is used for making transactions without needing a UPI, which is unlike how things work in case of the regular UPI transactions. Also Read - UPI records 7.3 billion transactions worth Rs 12.11 trillion in October
As far as differences are concerned, there are several factors that make UPI Lite different from the regular UPI transactions. First of all, the upper limit of UPI transactions is Rs two lakhs while the upper limit of UPI Lite transactions is Rs 200. UPI transactions are directly linked with your bank accounts, while UPI Lite transactions are based on e-wallets and so there is a limit of Rs 2,000 which a UPI Lite user can have in their bank account. Also, more than 100 banks support UPI transactions at the moment. UPI Lite, on the other hand, is restricted to just eight banks. Lastly, UPI transactions can be used for both sending and receiving money. UPI Lite transactions, on the other hand, can only used for sending money.
So, here is a step-by-step guide of how you can set up UPI Lite in BHIM app.
How to set up UPI Lite in BHIM app
Step 1: Download and install BHIM app on your Android phone or iPhone.
Step 2: Login the app and add a bank account for UPI transactions.
Step 3: Scroll down and tap the UPI Lite banner.
Step 4: Tap the Enable Now button.
Step 5: Read all the details and then tap the Enable Now button.
Step 6: Now, you will be asked to add Rs 2,000 to your UPI Lite e-wallet. Enter the amount that you want to transfer.
Step 7: Select the bank account from which you want to transfer the sum.
Step 8: Tap the Enable UPI Lite button.
Step 9: Enter your UPI PIN. Once the amount is transfer, your UPI Lite e-wallet will be activated.