UPI Lite and UPI ATM: Faster Small Payments and Cardless Cash Withdrawals Made Easy
UPI Lite and UPI ATM provide people with two new ways to use their smartphones to make quick digital payments, without having to enter a PIN repeatedly. UPI Lite allows users to pay for goods and services instantly with a lightweight wallet on their smartphone, without having to enter a PIN each time. UPI ATM allows users to withdraw cash from ATMs using their smartphones, allowing them to access their funds much faster than traditional methods.
UPI Lite
UPI Lite acts as an on-device lightweight wallet for UPI and allows users to make instant low-amount payments up to ₹500 for each transaction.
Wallet Capacity
Users load money from their bank account into their UPI Lite wallets when they create the wallet. The maximum amount of money that can be stored in a UPI Lite wallet is between ₹2,000 to ₹5,000, depending on the user's bank.
Daily Spending Limit
Users can spend anywhere from ₹2,000 to ₹4,000 per day using their UPI Lite wallets, making it a great way to pay for small everyday purchases like tea or groceries.
Server Load Reduction
By processing transactions locally on the smartphone rather than through the bank's server, UPI Lite reduces the bank's server load and enables the user to process their transaction much quickly.
UPI ATM Feature
UPI ATM allows users to withdraw cash from participating ATMs without needing a card, simply by scanning a QR code and confirming the transaction with a UPI PIN. Each day, users can withdraw up to ₹10,000 in cash from compatible ATMs.
App Availability
Currently, UPI ATM and UPI Lite are available on smartphones via various payment apps, including Google Pay, PhonePe, Paytm, and BHIM, and do not require any additional KYC to set up, beyond a standard UPI account set up.
Offline Capability
Additionally, UPI ATM and UPI Lite enable users to make payments in areas that are offline or have poor connectivity, making them useful tools for people living in remote areas, where access to traditional forms of banking may not be available.
