The Reserve Bank of India (RBI) has announced an increase in the UPI Lite wallet limit to ₹5,000 and the per-transaction limit to ₹1,000, effective December 4, 2024. This move aims to promote wider adoption of the popular instant payment system via mobile phones. Previously, the limits were set at ₹500 per transaction and ₹2,000 for the total wallet balance.
UPI Lite transactions allow users to make payments without needing an Additional Factor of Authentication (AFA), meaning they can complete transactions without entering a UPI PIN. Additionally, transaction alerts are not sent in real-time, making it a convenient option for small-value payments in offline scenarios. The RBI’s amendment to the offline payment framework, first issued in January 2022, is designed to facilitate digital payments in areas with limited internet connectivity.
The RBI had indicated its intention to adjust these limits during its monetary policy meeting in October 2024. The enhancement of UPI Lite limits is expected to encourage more users to engage in low-value offline digital transactions, further integrating digital payments into everyday financial activities.
