Earlier this month, the Reserve Bank of India (RBI) introduced a UPI payment service for feature phones designed to work without an active internet connection. Currently, NPCI (National Payments Corporation of India) has announced an on-device wallet called UPILite in India to allow users to make more transactions for small amounts that are too offline. Check the details below.
UPILite offline digital wallet announced
The National Payments Corporation of India (NPCI) has informed member banks of the launch of new offline on-device wallets similar to Paytm and Mobikwik through official circulation. UPI Lite will allow users to make small transactions in offline mode and will be compliant with RBI’s recent offline UPI payment service.
UPI Lite is an additional option in the UPI app for users to trade directly from their bank account, similar to how it works in the UPI app.The funds are Saved in a dedicated on-device wallet in the user’s UPI app’s common library..
How does it work?
According to NPCI, the UPILite wallet Process the transaction first “Mode close to offline.” This means that the UPILite wallet will record debit payments in offline mode. On the other hand, when the user comes online, the credit payment will be updated. However, according to NPCI, UPI Lite will eventually be able to record both debit and credit transactions in offline mode.
For transaction limits, users can use UPI Lite to pay and receive up to 200 rupees, with a total funding limit of 2,000 rupees. Moreover, Funds stored in UPI Lite wallet will be interest-freeThat is, there is no additional charge for storing funds in the wallet. You can maintain any number of UPI Lite balances, depending on the number of UPI apps you use.
Well, it’s worth mentioning Users must be online to add funds to UPI Lite.. In addition, you must provide Additional Factor Authentication (AFA) when adding funds, or use the UPI AutoPay feature to automatically add funds to your wallet when certain limits are reached. Although not required.
NPCI has a UPI app Default UPILite wallet for transactions under Rs200.. Users can view their transaction history via the UPI app and also be notified of their remaining balances. In addition, you can disable the UPI wallet at any time. When disabled, existing funds in the wallet will be refunded to the user’s bank account in real time.
When will it be available?
Unfortunately, once the UPI Lite wallet is available, we don’t yet have information on the exact launch schedule. However, it was initially started as a pilot and will be started nationwide in the coming months.
Kunal Kalawatia, Head of Product at NPCI, said in a statement: “Initially, UPI Lite was launched as a pilot with multiple banks and app providers, and after achieving sufficient comfort, a full-fledged commercial stand with an onboarding compliance timeline for publishers and app providers. Raise is declared... ”
So what do you think of the offline UPI wallet? Do you think it will help boost small transactions in India and help more people join the digital payments movement? Please let us know your thoughts in the comments below.