“RBI Raises UPI Lite Transaction Limit to ₹500, Introduces Innovative Features for Digital Payments”
The Reserve Bank of India (RBI) has proposed an increase in the per transaction payment limit for UPI Lite to ₹500 from ₹200. Additionally, the RBI introduces ‘Conversational Payments’ using AI and offline payments through NFC technology for UPI, aiming to enhance the digital payments experience in India.
The Reserve Bank of India (RBI) is taking steps to enhance the reach and convenience of digital payments by introducing new measures for UPI Lite. In a move aimed at promoting faster and more convenient small value transactions, the RBI has proposed an increase in the per transaction payment limit for UPI Lite from ₹200 to ₹500 in offline mode. This change aims to encourage wider adoption of digital payment channels for everyday transactions.
RBI Governor Shaktikanta Das highlighted the benefits of this change, stating, “By removing the need for two-factor authentication for small value transactions, these channels enable faster, reliable, and contactless mode of payments for everyday small value payments, transit payments etc.” While the per transaction limit is increased, the overall limit remains at ₹2,000 to manage the potential risks associated with relaxing two-factor authentication.
Furthermore, the RBI is embracing innovative technologies to enhance the digital payments experience. The RBI aims to introduce ‘Conversational Payments’ on the Unified Payments Interface (UPI), allowing users to engage in conversation with AI-powered systems to initiate and complete transactions securely. This feature will initially be available in Hindi and English, with plans to expand to more Indian languages.
The RBI also envisions introducing offline payments on UPI using Near Field Communication (NFC) technology through ‘UPI-Lite’ on-device wallets. This initiative aims to enable retail digital payments in areas with weak or no internet/telecom connectivity, ensuring speed and reducing transaction declines.
RBI Governor Shaktikanta Das highlighted the significance of these technological advancements, saying, “As Artificial Intelligence (AI) is becoming increasingly integrated into the digital economy, conversational instructions hold immense potential in enhancing ease of use, and consequently reach, of the UPI system.”
The introduction of these features aligns with the RBI’s efforts to make digital payments more accessible and efficient for users across India. UPI, with its real-time features and safety measures, has already transformed the digital payment landscape in the country. These new measures aim to build upon UPI’s success by addressing challenges related to connectivity and enhancing user experience through innovative technologies.
The RBI’s focus on increasing per transaction limits and introducing advanced features reflects the evolving landscape of digital payments in India. As the country moves towards a more digital-centric economy, these measures are poised to play a significant role in shaping the future of payment systems and fostering financial inclusion.
Sources By Agencies
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