How to Set Up UPI Lite Account on Paytm?

byDilip PrasadLast Updated: May 30, 2024
How to Set up a UPI Lite Account on Paytm?
  • UPI Lite allows transactions up to Rs 500 per transaction.
  • You can add up to Rs 4000 in a day.
  • The UPI Lite app has a maximum balance limit of Rs 2000 at any given time.
  • You can add Rs 2000 to your UPI Lite account twice a day.
  • This enables you to make transactions totaling up to Rs 4000 in a day.

In summary, with UPI Lite, you can make transactions up to Rs 500 each, add Rs 2000 to your account twice a day, and have a total transaction limit of Rs 4000 in a day.

Are you tired of repeatedly entering your PIN for small-value transactions? If so, consider switching to Paytm UPI Lite! A digital on-device wallet. It offers a hassle-free, pin-less, and convenient way to complete transactions within seconds. With Paytm UPI Lite, you can make payments of up to Rs. 500 in one go and add up to Rs. 4000 in a day. Isn’t that amazing?

Furthermore, you have the flexibility to add up to Rs. 2000 at any given time (remember, twice a day, totalling Rs. 4000) from your linked bank account and enjoy the convenience of making pin-free payments. If you’re ready to use Paytm UPI Lite, let us guide you on how to set it up on your Paytm app.

UPI Lite – A Detailed Understanding 

UPI Lite is a simplified version of the Unified Payments Interface (UPI) system and is a on-device wallet for small-value transactions. You can easily add money to UPI Lite from any linked bank account. Once you have added money to your UPI Lite, you can use it for various small-value transactions ranging from Rs. 1 to Rs. 500 in one go!

The maximum transaction limit for UPI Lite is Rs 500 per transaction, and you can add up to Rs 4000 in a day. However, note that the UPI Lite app can only hold a maximum of Rs 2000 at a time. This means that you can add Rs 2000 to your UPI Lite account twice a day, enabling you to make transactions totalling up to Rs 4000 in a day. Therefore, if you have Rs 2000 in your UPI Lite app, you can make multiple transactions until you use the entire amount (Rs. 2000). 

You can make 4 transactions worth Rs 500 each, or 5 transactions worth Rs 400 each, and so on, until you reach the Rs 2000 limit for the day. If you need to make more transactions on the same day, simply add another Rs 2000 to your UPI Lite account. The advantage of using UPI Lite is that it speeds up transactions by eliminating the need for a 4 or 6-digit PIN for each payment.

Let’s say you have a transaction limit of Rs. 500 in one go.

  • If you want to make a transaction of Rs. 10, you can do it 50 times (10 x 50 = 500).
  • If you want to make a transaction of Rs. 20, you can do it 25 times (20 x 25 = 500).
  • If you want to make transactions of Rs. 45, Rs. 75, Rs. 80, Rs. 30, and Rs. 66, the total would be Rs. 296. In this case, you would still be left with Rs. 204 (500 – 296 = 204).

    This means that even after making multiple transactions, you will have remaining balance to spend. UPI Lite provides you with the flexibility to make smaller transactions multiple times within your spending limit.

Read: What is the Difference Between UPI Lite and UPI?

Set Up a UPI Lite Account on Paytm

Step 1: Open the Paytm app on your smartphone.

Step 2: Open the app and click on your profile in the top left corner. Then, select ‘UPI & Payment Settings’ and click on ‘Activate UPI Lite’. Alternatively, you can use the search bar by typing ‘UPI Lite’ and selecting ‘Setup UPI Lite’.

Step 3: Enter the amount to activate UPI Lite and choose your preferred mode of payment. Then, click on ‘Proceed’.

Step 4: Your UPI Lite will be activated for small-value transactions.

Paytm, a prominent player in the digital payments industry, is committed to enhancing its services, features, and user experiences through technological and financial advancements. With its extensive reach and large customer base, Paytm plays a significant role in promoting financial inclusivity in the country. Now, with the introduction of UPI Lite, Paytm aims to further improve the consumer experience by offering faster, smoother, and more convenient transactions. By setting up a UPI Lite Account on Paytm, you can streamline your payments and enjoy hassle-free transactions.

Disclaimer: The purpose of this blog is to simplify complex processes for readers’ understanding. Please note that some information and screenshots provided may become outdated or change over time. However, we strive to keep our blogs updated and relevant to provide accurate and helpful information.


When was UPI Lite launched by RBI?

The Reserve Bank of India (RBI) launched UPI Lite during its Monetary Policy Meet in September 2022.

What is UPI Lite?

UPI Lite is a functionality introduced by NPCI (National Payments Corporation of India) that allows users to make small-value transactions.

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