UPI Lite launched for Federal bank; how customers can use it
Federal Bank has announced that it has launched the UPI (Unified Payment Interface) Lite functionality for small-value digital payments. UPI Lite allows an individual to store money in their UPI Lite on-device wallet and make offline payments to merchants.
What is UPI Lite
The Reserve Bank of India (RBI) had launched the UPI Lite functionality in September 2022 during its Monetary Policy Meet (MPC).
“The solution runs off existing UPI ecosystem protocols for mobile phones to ensure commonality, compliance and system acceptance. UPI LITE experience is intended to be a customer-friendly approach to enabling low value transactions without utilizing a Remitter bank’s core banking systems (CBS) in real-time, while providing adequate risk mitigation,” stated the press release by Federal Bank.
The main intention behind launching UPI Lite was to alleviate the stress on CBS occurring due to the sheer volume of UPI transactions.
Also read: How to use UPI Lite.
How Federal Bank customers can use UPI Lite
According to the Federal Bank press release regarding the launch, customers can enable the UPI Lite feature on their existing UPI app that supports the Lite functionality. “The process involves logging in, accepting terms and conditions, specifying the amount, selecting the linked bank account, and confirming the request with their UPI PIN,” stated the Federal Bank press release. A UPI Lite account can be created within the existing UPI app without downloading a new app, the press release added.
Benefits of UPI Lite for users include reduction in transaction time, a ready-to-access bank statement, higher payment success rate and enhanced security.
However, there is a transaction limit for how much money can be stored and
