What is the difference between UPI and UPI Lite?

UPI allows large transactions (up to ₹1 lakh daily) directly from a bank account, requiring a PIN for every transfer. UPI Lite is designed for small-value transactions, acting as an on-device wallet with a preloaded limit (up to ₹5,000). UPI Lite transactions up to ₹1,000 do not require a PIN, making them faster and more convenient for everyday microtransactions.