Whether you are a small business owner residing in a remote village or a busy professional constantly on the move, digital transactions are now more convenient and secure than ever with the introduction of the innovative facility of UPI Lite X. With UPI Lite X you can make payments anywhere and anytime, even without a stable internet connection.
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UPI Lite X is a game-changer for digital payments, especially in areas with poor or unreliable internet. Using NFC technology, this new feature enables you to make and receive payments without needing an active internet connection. This blog provides a detailed explanation of UPI Lite X, covering its benefits, usage, and how it differs from UPI.
What is UPI Lite X?
Launched by Reserve Bank of India governor Shaktikanta Das at the Global Fintech Fest 2023 as a groundbreaking innovative feature, UPI Lite X is an enhanced version of UPI that enables users to send and receive payments even without internet services. Targeting specific areas where there is poor connectivity, UPI Lite X is an ‘on-device wallet’ that aims to enhance payment convenience and comfortability for consumers.
But how does it eliminate the necessity of the internet that has earlier always been a major requirement for online transactions? No.
UPI Lite X is unique in the sense that it uses Near Field Communication (NFC) technology to transfer money between on-device wallets, thus eliminating the need for internet access. During payment, both payer and payee should enable UPI Lite X offline.
The existing limit is the same as UPI Lite that is, 2000 on wallet balance and 500 per transaction. However, the total number of transactions is limited to one debit and 10 credit offline transactions. If you have completed the payment in offline mode, then it is necessary to connect to the internet within 4 days to receive funds.
Remember that UPI Lite X transactions, except for top-ups, wont appear in your account statement or passbook. You will receive an SMS from your issuing bank with details of the transaction and available balance. If offline transactions are made, you’ll receive details only when you reconnect to the internet.
Features and Benefits Of UPI Lite X
Offline Transactions
- It enables money transfers without an internet connection, making it ideal for areas with poor or no connectivity.
- For a UPI Lite X offline transaction to occur, both the payer and the payee need to have the UPI Lite X offline feature enabled on their devices.
Near Field Communication (NFC) Technology
- Ensures seamless, secure transactions between devices, minimizing the risk of interruption or payment failure and simplifying the process of sending and receiving money.
On-Device Wallets
- Stores fund locally on users’ devices and ensure quick access without network dependency.
User-Friendly Interface
- Easy-to-use design that simplifies the process of online transactions for users, promoting wider accessibility in both urban and rural users.
Low Battery Consumption
- Optimized for minimal battery usage, further ensuring the longevity of device usage and accessibility during online transactions.
Requirements to Access UPI LITE X
- Both sender and receiver’s devices need to be nearby
- UPI Lite X is accessible to anyone with compatible devices that support Near Field Communication (NFC).
- Remember that payment won’t be made in bank accounts but in on-device wallets to transfer money using NFC from sender to receiver’s on-device wallets.
How is UPI LITE X Different from UPI and UPI LITE?
| Features | UPI | UPI Lite | UPI Lite X |
|---|---|---|---|
| Internet Requirement | Requires internet connectivity | Requires internet connectivity | Supports offline transactions |
| Transaction Limit | Maximum daily UPI transfer limit varies between banks, typically ranging from Rs. 25,000 to Rs. 1 lakh. | Total transaction upto Rs. 4,000 is allowed in 24 hours | Same as UPI Lite |
| Authentication | Requires internet for OTP/ biometric | Uses locally stored data for authentication, No PIN is required | Uses NFC for offline transactions |
| Usage Scenarios | Everyday payments, online | Urban and rural areas, high connectivity | Areas with no connectivity |
| User Interface | Standard mobile app interface | Simplified interface, uses NPCI Common Library (CL) application | Mobile app with NFC toggle |
UPI Lite X opens up endless possibilities to make the consumer’s experience of money transfer hassle-free, efficient, and quick. With an opportunity to transfer money in poor connectivity areas, the payment experience has become more simplified and accessible for users irrespective of their geographical setting. UPI Lite X therefore, marks a transformative leap in the realm of digital payments and is turning out to become the next generation of payment solutions, promoting a cashless economy.
Disclaimer: This blog is written to make it easy for readers to understand complicated processes. Some information and screenshots may be outdated as government processes can change anytime without notification. However, we try our best to keep our blogs updated and relevant.
