UPI Lite digital payment service was launched by the Reserve Bank Of India in September 2022 after being designed by the National Payments Corporation of India (NPCI). This digital payment service enables users to send up to Rs. 200 without a PIN from their UPI Lite account, making it ideal for quick payments such as groceries, cab rides, snacks etc. With UPI Lite introduced on Google Pay, users can make fast transactions with just one click. The UPI Lite account will be linked to the user’s bank account but will not rely on the bank’s core banking system in real-time.
Google Pay notes that UPI Lite promises high success rates, even during peak transaction hours. The UPI Lite account can be filled with up to Rs. 2000 twice daily, and users can perform effortless transactions of up to Rs.200. As a result, using UPI Lite doesn’t clutter up your passbook as it bears fewer transaction details.
Paytm and PhonePe launched UPI Lite just weeks prior to Google Pay. The feature is seeing great success as 15 banks currently support the UPI Lite feature, with more banks to follow in the next few months.
Activating UPI Lite on your Google Pay app is a very simple process without any KYC authentication. The step-by-step process is as follows;
- Open the Google Pay app.
- Tap on the profile icon, usually in the top right corner of the screen, to open your profile page.
- Navigate and tap on the “UPI Lite” activation option
- A new screen will appear with all the relevant instructions and details about UPI Lite
- Read through all this information
- Tap on the UPI Lite activation option
- Go through the linking process, which may involve linking your bank account or verifying details, as prompted by the on-screen instructions provided by Google Pay.
- You will receive a confirmation message indicating that your UPI Lite account has been activated successfully after the linking process is done.
- Once activated, open the Google Pay app and tap the UPI Lite section or wallet.
- Tap on the add funds option and enter up to Rs. 2000 in funds
- Confirm the transaction for the desired amount to be added to your UPI Lite account
The daily limit for adding funds to your UPI Lite account is RS.4000. Additionally, your UPI Lite account will be selected by default for transactions that are Rs.200 and less, without the need for a UPI PIN.
Thus, the introduction of UPI Lite to Google Pay allows users to make small transactions without a UPI PIN. This helps users have a more convenient and compact consumer experience.