New Delhi: In a bid to boost the digital payments system in the country, the National Payments Corporation of India (NPCI) has announced UPI Lite, after the immense popularity that UPI has garnered. It is easily one of the most widely accepted digital payment modes as it provides ease and convenience. Now, the NPCI has announced UPI Lite what it calls "UPI lite – On-Device wallet" that will small value transactions in an offline mode. However, it is not yet known when UPI Lite will be launched in the country.
UPI Lite would essentially process the transactions in total offline mode, but in the initial phase it would carry out the transactions in "near offline" mode, according to a report published by The Hindu Business Line. UPI Lite will be launched as a pilot programme first with several app providers and banks. According to reports, some member banks of NPCI, UPI Lite would be similar to MobiKwik and Paytm.
While the exact timeline of UPI Lite's launch is not known yet, the NPCI has said that in the first phase, UPI Lite would be launched as a pilot. Later, a full-scale commercial launch will be held after due comfort has been achieved.
UPI lite intends to make transactions possible without internet access which also means it is eyeing to enter deep into the Tier 4 and Tier 5 towns of the country. According to NPCI, at least 75 per cent of the total volume of retail transactions (including cash) in India are less than Rs 100 transaction value while 50 per cent of the total UPI transactions are having a transaction value of up to Rs 200 and that is why NPCI will only allow offline transactions up to Rs 200 via UPI Lite, the report added.