What Is UPI Lite X, Announced By RBI Governor, And How Does It Differ From UPI & UPI Lite?

New Delhi: The Reserve Bank of India governor Shaktikanta Das introduced a new kind of UPI – UPI Lite X durig the Global Fintech Fest 2023. The technology will allow the transition of payments between merchants and customers even when one of them or both are offline.

The revolutionary tech would pave way for expansion of Unified Payments Interface (UPI), which has become a major source of payment in the country because of its feasibility, accessibility, and zero-cost.

Last year, NPCI introduced UPI Lite, a method for sending or receiving payments of up to Rs 200, which has now been increased to Rs 500, in real-time without requiring a UPI pin. This innovation has helped customers eliminate small transactions that cluttered their financial statements. They can now send or receive small denomination amounts by adding the funds to an on-device UPI wallet.

What is UPI Lite X and What makes it different from UPI and UPI Lite? 

Another area that needs to look for in order to expand the technology of UPI across the country is no or limited connectivity zones. UPI lite X aims to overcome the barrier by allowing making transactions without internet. You can send or receive money when you are totally being offline.

In a statement, the National Payments Corporation of India (NPCI) said: “Building on the success of the UPI LITE feature, the RBI Governor launched UPI LITE X for Offline payments. Through this feature, users can now both send and receive money whilst being completely offline, therefore, allowing users to initiate and execute transactions even in areas with poor connectivity, such as underground stations, remote areas, etc. UPI LITE X will be accessible to anyone with a compatible device that supports Near Field Communication ( NFC). UPI LITE payments are faster than other payment methods, as they require less time to process the transaction.”

How does UPI lite X work?

For using UPI lite X, both the sender and receiver’s devices will need to present in a close range. UPI lite X uses NFC to transfer money between the sender’s on-device wallet and the receiver’s on-device wallet. In short, payments are happening between on-device wallets, not in bank accounts.

There’s no information regarding how much a user could be able to send under UPI lite X so far.    

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