RBI Increases UPI Lite Wallet Limit To Rs 5,000, Offline Limits To Rs 1,000

The Reserve Bank of India on Wednesday announced an increase in the total wallet limit for UPI Lite from Rs 2,000 to Rs 5,000. The offline transaction limit has risen from Rs 500 to Rs 1,000, effective immediately.

In October, the RBI stated its intention to adjust these limits as part of its monetary policy.

"Framework for facilitating small value payments in offline digital mode, issued by the Reserve Bank, under which UPI Lite has been enabled, will be suitably amended," it had said in its statement on developmental and regulatory policies.

This decision comes as the RBI conducts pilot tests of technologies that enable retail digital payments in situations where internet connectivity is low or not available.

UPI Lite allows users to conduct low-value transactions without using a UPI PIN. It offers a customer-friendly approach and does not rely on a bank’s core banking systems in real-time. The system enables offline debit for payments; however, credits must be made when online.

UPI Lite supports offline transactions for person-to-person payments, person-to-merchant payments, and small merchant payments. Users can pay by scanning or sharing QR codes and through intent-based transactions.