2024-06-12 By Surbhi Chauhan UPI Payments

"Introducing UPI Lite X: Unveiling the Next Generation of Digital Payment Innovation!"

The Reserve Bank of India (RBI) Governor recently launched UPI Lite X, a groundbreaking feature enabling users to send and receive money entirely offline. This innovative addition was unveiled earlier this week during the Global Fintech Fest 2023.

What is UPI Lite X?

UPI Lite X allows users to conduct transactions without any connectivity, ideal for places like underground stations and remote areas. Users can now send and receive money offline using Near Field Communication (NFC) technology on compatible devices.

The National Payments Corporation of India (NPCI) highlighted the efficiency of UPI Lite X, stating, "Building on the success of UPI Lite, the RBI Governor launched UPI Lite X for offline payments. This feature allows users to both send and receive money completely offline, even in areas with poor connectivity. UPI Lite X will be accessible on devices that support NFC."

UPI Lite X vs. UPI Lite vs. UPI

UPI Lite is designed for low-value transactions under Rs 500, using an on-device wallet for real-time payments without a UPI PIN.

UPI is a 24/7 instant payment system for real-time bank-to-bank transfers using the Immediate Payment Service (IMPS) infrastructure.

UPI Lite X requires both sender and receiver to be in close proximity, unlike UPI and UPI Lite, which allow transactions via QR code or UPI ID regardless of location.

Key Differences

Transaction Method: UPI and UPI Lite enable remote transactions via QR codes or UPI IDs, while UPI Lite X requires both devices to be nearby.

Payment Source: UPI transfers money directly between bank accounts. UPI Lite transfers from an on-device wallet to a bank account. UPI Lite X uses NFC technology for offline payments.

Limits: UPI allows daily transfers up to Rs 2 Lakhs. UPI Lite caps single transactions at Rs 500 and daily transactions at Rs 4,000.

Additional Features

UPI Tap & Pay: Users can now tap NFC-enabled QR codes for payments at merchant locations, complementing the traditional Scan and Pay method. This feature aims to boost the adoption of NFC and QR code technologies.

Credit Line on UPI: A new offering enables pre-sanctioned credit lines from banks via UPI, revolutionizing customer access to credit and streamlining digital banking.

Hello! UPI – Conversational Payments: Users can transfer money through vocal commands, authenticated by their UPI PIN. Developed in collaboration with the Bhashini program - AI4Bharat at IIT Madras and NPCI, this feature supports Hindi & English, making digital payments accessible to those proficient in their native languages, especially seniors and less tech-savvy individuals.

BillPay Connect – Conversational Bill Payments: Bharat BillPay introduces a nationalized number for bill payments via messaging apps. Customers can fetch and pay their bills by sending a simple ‘Hi’ or by giving a missed call, providing convenience for those without smartphones or mobile data access.

With the launch of UPI Lite X and these complementary features, the RBI and NPCI are driving innovation in the digital payment landscape, enhancing accessibility, and promoting financial inclusion across India.