To aware and encourage users to adopt UPI Lite, RBI has announced that it is raising the transaction limit to Rs 500. This means that users can now make UPI Lite payments of up to Rs. 500 without having to enter their UPI PIN.
This limit was earlier set to Rs. 200. The new transaction limit for UPI Lite is a welcome move for many users.
It will make it easier and faster to make small value payments, and it will also reduce the number of times that users have to enter their UPI PIN. This move comes in addition to the ability to make offline transactions using Near Field Communication (NFC) technology through UPI Lite.
Further the RBI Governor, Shashikanta Das announced that there will be a conversational feature that will allow users to interact with a chatbot to make payments. The chatbot will ask the user a few questions to verify their identity and then process the payment.
The RBI press release reads: “With the objective of harnessing new technologies for enhancing the digital payments experience for users, it is proposed to (i) enable “Conversational Payments” on UPI, which will enable users to engage in conversation with AI-powered systems to make payments; (ii) introduce offline payments on UPI using Near Field Communication (NFC) technology through ‘UPI-Lite’ on-device wallet; and (iii) enhance the transaction limit for small value digital payments in off-line mode from ₹200 to ₹500 within the overall limit of ₹2000 per payment instrument.”
Shashikanta Das believes that these new initiatives will provide frictionless payments and attract more and more users to trust online payments.
RBI Governor mentions: “These initiatives will further deepen the reach and use of digital payments in the country.”
To conclude, The increase in the transaction limit for UPI Lite is a positive development for the digital payments ecosystem in India. It will make it easier for people to make small payments which will help to boost the economy.
Categories: Trends
Source: HIS Education