Reserve Bank of India (RBI) has introduced UPI Lite for low value transactions in India. UPI Lite will work the same way as UPI, but it is designed to be much faster and simpler.
UPI Lite is an on-device wallet, which is directly linked to the bank account for making or receiving money payments. UPI Lite can be accessed through BHIM UPI app. It works just like PayTM Wallet. In this also money will have to be added to the wallet first and then money can be sent to anyone.
Interestingly, with UPI Lite, customers can make payments without an internet connection. Because it is a wallet, users just need internet to add money and then send money to anyone without internet access.
Keep in mind that money cannot be received without internet. An internet connection will be required to receive the payment. Also, UPI PIN is not required to use UPI Lite as it is an on-device wallet. Being the lite version, only ₹2,000 can be added to the wallet and users can spend a maximum of ₹200 in a single transaction.
Currently, there are eight banks that provide UPI Lite function. These include State Bank of India, Union Bank of India, HDFC Bank, Indian Bank, Canara Bank, Punjab National Bank, Kotak Mahindra Bank and Utkarsh Small Finance Bank.