Mumbai: Unified Payments Interface (UPI) is an Indian instant payment system. It was developed by the National Payments Corporation of India in 2016. The interface facilitates inter-bank peer-to-peer and person-to-merchant transactions.UPI is the most popular digital payment system in India.
UPI Lite is launched specifically for small-ticket transactions. UPI Lite is a simplified version of UPI. It offers convenience of wallet-like functionality without requiring a wallet license or the associated regulatory complexities for Payment Service Providers (PSPs) and Third-Party Application Providers (TPAPs). UPI Lite allows for single-click payments, without the need for PIN entry for low-value transactions.
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The recent developments in UPI Lite have made it even more attractive for users. Two notable changes include:
1. Auto Top-Up Feature: Now, UPI Lite can automatically top up when the balance falls below a certain threshold. This feature was introduced during the Global Fintech Fest (GFF).
2. Increased Transaction Limits: Initially capped at INR 200, the per-transaction limit was raised to INR 500 and then to INR 1000.
UPI is an interoperable payment platform, allowing users to link a single bank account across multiple PSP or TPAP apps. However, UPI Lite is currently app-specific and does not share this interoperability.
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