UPI vs UPI Lite: Transaction limit, other key differences between these two India's digital payment systems explained

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UPI is a 24X7 instant payment system that allows you to transfer money in real time between two bank accounts. UPI Lite is an on-device wallet feature that allows users to make real-time small-value payments. "UPI and UPI Lite are both revolutionary in their own right.

While UPI has transformed the digital payment landscape in India, UPI Lite is set to take it a step further by making digital transactions accessible to every Indian, irrespective of their internet connectivity. UPI Lite will give more wings to UPI transactions, expanding the reach and impact of digital payments. It’s not about one versus the other, but about how both can coexist to accelerate financial inclusion in our country," said Amit Nigam, Executive Director & COO at BANKIT UPI Lite differs from UPI in various ways.

Here are some of the significant differences between UPI Lite and UPI: Dr. Navneet Gupta, Founder and CEO of YPay said that UPI Lite focuses primarily on fund transfers and payments, omitting some advanced features. “While UPI offers versatility, UPI Lite provides simplicity, ensuring accessibility for all, regardless of tech-savviness.

Considering that feature phones still constitute 50% of the market, this will give a boost to payments where internet penetration is low," said Navneet Gupta. Moreover, in a country like India, where a significant portion of the population resides in Tier-3/4 cities and villages, UPI Lite can work wonders, he added. Customers of all UPI Member banks with NPCI can use UPI via TPAP applications like BHIM, Google Pay, Paytm, PhonePe, etc., or mobile banking apps of member banks.