The Reserve Bank of India (RBI) has announced that people can now make offline payments up to Rs 500 through UPI Lite Wallet, even in areas with no internet or weak signal. This move comes as the RBI aims to increase the usage of UPI Lite and facilitate digital transactions in remote areas.
Previously, the maximum amount for offline payment through UPI Lite Wallet was Rs 200. However, the RBI has now increased this limit to Rs 500. It is important to note that the total amount that can be transacted through this facility on a payment platform is still limited to Rs 2,000.
In a circular on increasing the limit for small amount digital payments through offline mode, the central bank stated, “In order to encourage small value transactions, the upper limit for offline payments has been increased to Rs 500.”
The UPI Lite Wallet has gained popularity among basic mobile phone owners in a short span of time. Currently, more than one crore transactions are conducted through this payment platform in a month. This demonstrates the growing acceptance and usage of UPI Lite among the masses.
To further promote the use of UPI Lite, the RBI had earlier proposed to facilitate offline transactions using NFC (Near Field Communication) technology. One advantage of NFC transactions is that PIN verification is not required, which ensures faster and more convenient payments.
Overall, these developments by the RBI are aimed at promoting digital payments, especially in areas with limited internet connectivity. The increased limit for offline payments through UPI Lite Wallet and the introduction of NFC technology for transactions are expected to further boost the adoption of digital payment solutions in India.
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