The National Payments Corporation of India (NPCI) launched the United Payments Interface (UPI) in 2016. Recently, the organization introduced UPI Lite to make low value transactions secure and fast. It is an on-device wallet feature that enables users to conduct low value transactions in real time without using UPI PIN as is the case with regular UPI transactions.
As of now, UPI Lite functionality is enabled on the BHIM app and is available only for customers of eight banks, which include Canara Bank, HDFC Bank, Indian Bank, Kotak Mahindra Bank, Punjab National Bank, State Bank of India, Union Bank. India and Utkarsh Small Finance Bank.
Using UPI Lite is simple. First you set up an e-wallet inside the BHIM app. This e-wallet, i.e. UPI Lite, is linked to your bank account. You then transfer money from your connected bank account to your UPI Lite e-wallet. Thereafter, this balance is used to make transactions without the need for UPI, which is unlike the way it works in case of regular UPI transactions.
As far as the differences are concerned, there are several factors that make UPI Lite different from regular UPI transactions. Firstly, the upper limit for UPI transactions is Rs 2 lakh while the upper limit for UPI Lite transactions is Rs 200. UPI transactions are directly linked to your bank accounts, whereas UPI Lite transactions are based on e-wallets and hence there is a limit of Rs 2,000 that a UPI Lite user can keep in his bank account. Also, at present more than 100 banks support UPI transactions. On the other hand, UPI Lite is limited to just eight banks. Lastly, UPI transactions can be used to both send and receive money. On the other hand, UPI Lite transactions can only be used to send money.
So, here is a step-by-step guide on how you can set up UPI Lite in BHIM app.
How to set up UPI light in BHIM app
Step 1: Download and install the BHIM app on your Android phone or iPhone.
Step 2: Log in to the app and add a bank account for UPI transactions.
Step 3: Scroll down and tap on the UPI Lite banner.
Step 4: Tap on Enable Now button.
Step 5: Read all the details and then tap on Enable button.
Step 6: Now, you will be asked to add Rs 2,000 to your UPI Lite e-wallet. Enter the amount you want to transfer.
Step 7: Select the bank account from which you want to transfer the amount.
Step 8: Tap on Enable UPI Lite button.
Step 9: Enter your UPI PIN. Once the amount is transferred, your UPI Lite e-Wallet will be activated.
The post How to set up UPI Lite in BHIM app: A step-by-step guide first appeared on BGR India.