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UPI gained prominence in the rapidly growing landscape of digital transactions. Both UPI and UPI lite have achieved equal popularity as a convenient way of making transactions by offering unique advantages to their users and catering to their varying needs and preferences. But it always remains a question, which one of them UPI or UPI lite is suitable for us according to our needs? To that it is better to explore their features, transaction limits, and use cases that will help you to make an informed choice between the two.
What is UPI?
UPI complete form stands for Unified Payment Interface. At present, it stands as India's leading transaction mode for a majority of the population revolutionizing the way of day-to-day financial transactions. The system is conceived by the National Payments Corporation of India (NPCI). It empowers users to seamlessly transfer funds between two bank accounts in real-time. The only requirement for these transactions is a smartphone with an internet connection and a UPI Id, with the help of these users can make any kind of digital payment anywhere in the country.
How to use UPI?
In terms to access UPI on your smartphone follow the given steps:
- Download a UPI app like Paytm, Google Pay, or PhonePe.
- Register your mobile number for verification.
- Set up a 4-6 digit UPI PIN for transaction authorization.
What is the transaction limit of UPI?
At present time, the maximum transfer limit of UPI is up to Rs. 2lakhs in a single transaction. This limit is applicable for both national and international transactions. The upper limit may vary from bank to bank.
Can we receive money through UPI?
Yes, we can definitely receive money through UPI from other UPI IDs and bank accounts, provided the sender has a valid and registered UPI ID.
What is UPI Lite?
UPI Lite is something introduced by the Reserve Bank of India (RBI) as a solution tailored for quick and effortless small-value transactions. UPI Lite allows seamless small-value transactions, eliminating the need for a UPI PIN.
What is the transaction limit of UPI LIte?
UPI Lite caters to low-value transactions with a limit of Rs.200 per transaction. Users do not need to put in their UPI PIN for transactions under Rs.200. Additionally, the maximum balance allowed in the UPI Lite wallet is Rs.2000.
| Description | UPI | UPI Lite |
| Definition | UPI is a digital payment system that allows to make transactions between two accounts. | UPI Lite is a on-device feature that allows to make small value transactions without PIN. |
| Can send money? | Yes, one can send money to another bank account up to Rs.2 lakhs. | Yes, one can make small-value transactions with an upper limit of Rs.200 |
| Can receive money? | Yes, one can receive payments from other bank accounts. | UPI Lite supports debit from its wallet at present and all credit amounts are directly received in bank account. |
| Transaction limit | The upper limit of the transaction is Rs. 2 lakhs. | The upper limit of the transaction is Rs.200. Total balance on the device can be Rs.2000 |
| PIN requirement | A 4 to 6 digit PIN is mandatory. | You don't need a PIN to make transactions up to Rs.200. |
Which one is the right choice?
Both UPI and UPI Lite come in with distinct benefits, tailored to specific transaction needs. UPI has always remained an unparalleled option for large digital transactions. While UPI Lite benefits its users by facilitating hassle-free small-value transactions without needing a PIN.
Whether you are a frequent user of digital transactions or someone who prefers to make physical payments, understanding the differences and strengths of UPI and UPI Lite will empower you to choose the best payment system that aligns with your needs.