UPI lite is a system that was designed to enable offline payments. It is an extension of UPI and was introduced to make small-value transactions in the absence of an internet connection. The main idea behind creating UPI Lite was to make digital payments accessible and available for every individual in India across all strata, particularly for people in rural regions where the reception is poor and where internet connectivity is a minimum or zero. It is an initiative to promote financial inclusion in the remotest corners of India and enable people to embrace digital transactions for small and everyday needs. Through the UPI Lite system, people have managed to use digital transactions in their everyday lives. It allows a certain level of financial flexibility where not having access to cash and other resources will not limit your chance of paying, and you can use UPI lite during those times.

UPI Lite was targeted to facilitate small-value payments, those that fall under the amount of INR 200. It is an ideal solution for making small-time payments for everyday transactions like goods and services, groceries, taxi and bus fares, etc. UPI lite provides users with the platform to make simple and quick digital transactions on a minimal internet connection, which can be a boon in some cases for people who need to use UPI transactions for making such payments. It is also a great tip for travellers visiting remote areas who may need to make payments in low-connectivity areas. It is an ideal solution for such situations.

Zet App Download

How does Upi lite work?

The principal way UPI lite functions is that it makes use of the user's device where the transaction data is stored; this allows for quick processing of payments in time of need. The use of stored data allows transactions to go through without the need for real-time communication with the bank's servers. Once the internet connectivity has been restored, the bank's server will sync and update the transaction details after the payment has gone through earlier. UPI Lite does not use real-time data, does not require connecting to the internet, etc. It also does not have OTP authentication and instead relies on biometric authentication. For this, the UPI lite enabled app has to have a pre-loaded UPI lite wallet from where the amount will be deducted; this is so that at the time of the transaction, the money does not directly get debited from the bank account but from a wallet with stored money specifically for use in times of UPI lite transactions.

Read More:: Is 776 a Good CIBIL Score?

How to install or initiate UPI lite?

As UPI lite was designed to simplify digital transactions in low internet areas, it is designed to be simple and hassle-free. Let us take a look at how to go about it-

1: For any user to be able to use UPI Lite, they have to possess the most recent versions of their UPI payment application. UPI Lite is now being introduced by most upi-enabled applications, such as Google Pay, PhonePe, Paytm, etc.

2: The next step is to enable UpLite for your account. For this, make sure that your bank has enabled the UPI lite facility, as not many banks have adopted this new feature yet. You can check with your bank for the information.

3: Then, you will need to set up a UPI lite limit for your wallet. Since it caters to small-scale payments, you need to set your limit accordingly and manage your one-time transaction limit as well. You can set it as per your requirements, but one point to remember is that UPI lite allows only small-value transactions, so your one-time transaction limit has to be low as well.

4: Finally, you can add funds to your UPI lite wallet so that you are always prepared when it comes to emergencies. You can transfer that money from the bank account linked to your UPI lite linked bank account. Once your wallet has the funds, you are ready to use UPI lite whenever required.

Read More:: What is CMR Rating in CIBIL?

How to use UPI lite to make payments?

Here is a step-by-step guide to make upi-lite payments:

1: The first thing you will do is initiate the payment by opening your UPI-enabled mobile phone application. You do not need to be connected to the internet at a high speed to initiate your UPI lite transaction.

2: The next step is to select the payment option and choose the recipient from your contact list. You can also enter their UPI ID manually.

3: The third and most important step is to select the "UPI Lite" payment method instead of the regular payment mode. This ensures that your transaction will go through the medium of UPI lite only.

4: In the next step, you will be prompted to authenticate your payment through a biometric security system, which will either be a fingerprint reading or a facial recognition system.

5: Once you have authenticated your payment, your transaction will go through and the data for the same will be stored locally on your device until the servers can be reached upon gaining stable internet connectivity by your mobile device. The recipient will receive the payment instantly.

*A lack of internet connection or low connectivity will not deter the completion of the transaction since UPI is mainly designed to support digital money transfers in low-connectivity situations.

UPI lite can be a true lifesaver when it comes to emergencies; travellers can benefit a lot from this feature as well. Let us take a look at the many advantages of using UPI Lite-

1: Offline payment enabled- Of course, the first advantage is its core function. It can facilitate payments without the need for an active internet connection, which makes it a perfect alternative for remote locations, rural areas, and unreliable connectivity.

2: Fast transactions- The transaction time for UPI lite enabled transactions is relatively faster than normal transactions, as the need for connecting to the network and verifying the entire process is eliminated.

The idea for small value payments is designed as a solution for micropayments, such as day-to-day purchases of small goods and services like fares.

3: Financial Inclusion- It fosters an environment of financial inclusion across people of all financial statuses in India. It brings digital payment services to the lowest strata of people, ensuring that they also have access to better services and can make digital payments accessible to everyone.

4: Safe and secure- Like all UPI-enabled transactions, UPI lite also has the security of encrypted transaction details and a biometric authentication process, which eliminates any risk.

5: No data usage- Since it can work offline, it does not consume data, which can be a boon for users with limited data as it is hassle-free, efficient, and cost-effective as well.

Read More:: Reasons For Loan Rejection Despite Good CIBIL Score

Limitations of using UPI Lite

Since the very idea of UPI Lite comes from the concept of facilitating minimal hassle-free digital transactions in relatively lower internet connectivity areas or situations, its functions are basic and fuss-free. This is a boon in case of emergencies and is especially helpful if you are in a low reception area or rural area and need to make a payment instantly. But it also comes with some limitations. Users must understand its limitations and benefits to properly use UPI lite. Let us take a look at these limitations:

1: Limited transaction amount- Since it is designed to support small-scale transactions amounting to about INR 200 or less, it is not suitable for making larger payments or transferring large amounts of funds.

2: Limited scope- UPI lite also does not support all kinds of transactions when it comes to transferring money. It is designed to support only personal or peer-to-peer transactions and certain small business transactions between consumers and business owners. It may not support all kinds of business-to-consumer transactions.

3: Delay in alerts and updates- Since it works in low-connectivity areas and situations, the alerts for money deduction or money credited may not be automatically updated in an instant. It requires the device to be fully connected to the internet for the data to sync and the system to be updated for you to get your alerts and messages.

4: Not available on all UPI- enabled applications- UPI Lite is in its nascent stages, and it has only been enabled in certain UPI applications and certain regions across India. Also, not all banks and businesses support UPI Lite currently. It will be some time before it is rolled out and reaches every nook and cranny of India. Until then, only a few applications, banks, and certain regions will have UPI Lite-enabled transactions.

Read More:: Benefits of Good Cibil Score

Conclusion

In a country like India, where the topography is so vast that it scales the Himalayan Mountains and reaches the shores of the Indian Ocean, issues like connectivity and internet are a major concern. In this day of digital transformation where everything has moved to the digital space, people face a lot of challenges because of bad connectivity. Since the Indian Govt. has laid a lot of emphasis on digitisation of India and has made great strides to turn India into a cashless economy, such hurdles can reflect on the performance of the nation as a whole. That is how the UPI Lite feature was conceptualised- so that even with minimal connection- users can still make use of their cell phones to do digital transactions. It was designed to facilitate digital payments in every nook and corner of India, from the highest mountains like Ladakh to the farthest shore.

UPI Lite is a great tool for making small-value transactions and is very useful in times of emergencies. It is a great initiative and once it rolls out full-scale, it will transform how digital transactions happen. The hurdle of not having internet connections will be a story of tomorrow, and digital transactions will be enabled with little to no connectivity with time, making India a truly cashless Nation. With UPI Lite, people in India are being able to make digital transactions without having to worry about a stable internet connection. It makes small-value transactions so much easier and faster.

FAQs

What does UPI Lite do?

UPI lite helps users make small-scale payments even in situations of very low internet connectivity or minimal cell-phone reception. It uses pre-stored data from your phone to make small-value digital payments in an instant.

Can I pay my bills with UPI Lite?

No, UPI lite is specifically designed to meet the requirements of small value amounts and mostly facilitates peer-to-peer personal transactions. As of now, it does not allow for the payment of bills and other transactions.

Is UPI lite the same as the UPI app?

UPI Lite is part of the UPI transaction system, but it is different in its function because UPI Lite only allows users to make small transactions with limited funds. It is basically a tool for use in low-network areas and to make small payments in emergencies.

Can I use UPI lite with any bank account?

As of now, not all banks have enabled UPI Lite-enabled transactions. For specific banks, you will have to check with your bank to know whether they facilitate UPI lite transactions.

Do I need a separate application for using UPI Lite?

No, UPI lite can be used through any of your UPI-enabled applications, but make sure to check that they have this feature.

Do I need to register separately for UPI Lite?

Your UPI Lite will work with the account linked to your UPI application. You can use your UPI app to transfer funds to your UPI Lite wallet.