UPI Lite: RBI raises limit of wallet to ₹5,000, per transaction to ₹1,000

The Reserve Bank on Wednesday increased the UPI Lite wallet limit to ₹5,000 and per-transaction limit to ₹1,000 in order to encourage wider adoption of the popular instant payment system through mobile phones.

UPI Lite transactions are offline to the extent that an Additional Factor of Authentication (AFA) is not required, and transaction alerts are not sent in real time.

Currently, the upper limit of an offline payment transaction is ₹500 and the total limit for offline transactions on a payment instrument is ₹2,000 at any point in time.

The Reserve Bank on Wednesday amended the 'offline framework' issued in January 2022 with an aim at facilitating small value digital payments in offline mode.

"The enhanced limits for UPI Lite shall be ₹1,000 per transaction, with ₹5,000 being the total limit at any point in time," said a Reserve Bank circular.

An announcement in this regard was made by the central bank in October this year.

An offline payment means a transaction that does not require internet or telecom connectivity to take effect.