Check Out Key Differences, Transaction limits, and payment procedure
Last Updated : Nov. 4, 2022, 11:53 a.m.
If you are confused about UPI vs UPI Lite and want to know which one is best suited for your needs, you are at the right place. In this blog, we will discuss everything about these money transaction apps ( UPI vs UPI Lite ), including how they work and their key features so that you can decide the right one for you.
What is UPI?
UPI stands for Unified Payments Interface. It is emerging as India’s most popular transaction mode and has become a household term. Designed by the NPCI (National Payments Corporation of India), UPI is an instant payment platform that allows you to transfer money between two bank accounts 24*7 in real-time. All you need is a smartphone with a stable internet connection and a UPI ID. You can transfer money with the help of a virtual wallet or from your bank account (by linking it with your UPI ID). You can add multiple bank accounts in a single mobile application.
How to use UPI?
First things first! To use UPI, you need to have a bank account with a bank affiliated with UPI. More than 100 private and government sector banks authorize access to their bank accounts through the UPI apps. Once you have the bank account, download the UPI app on your mobile phone. Paytm, Google Pay, and PhonePe are some of India’s commonly used UPI apps. Make sure your mobile number is registered with your bank account for verification purposes.
A UPI PIN is mandatory for all UPI transactions. While registering on the app for the first time, you will be directed to create a 4-6 digit PIN. Later, you can use this PIN to authorize all bank transactions from your UPI ID. Single-click authentication, a straightforward interface, and quick money transfer options have made UPI very popular among the Indian populace.
What is the transaction limit of UPI?
Currently, the maximum amount you can transfer using UPI is Rs. 2 lakh.
Can I receive money via UPI?
Yes, you can receive money from other UPI IDs and bank accounts via UPI. However, it is only possible if the sender also has a valid and registered UPI ID.
What is UPI Lite?
UPI Lite was recently launched by RBI (Reserved Bank of India). It is a mobile wallet that allows users to make small-value payments in real-time without entering a UPI PIN.
How does UPI Lite work?
To use UPI Lite, you must first load money or add funds into your app wallet from your bank account. You can use these pre-loaded funds later to pay via UPI Lite.
Who can access UPI Lite?
The BHIM app supports UPI Lite. Presently, users of eight banks, including Indian Bank, Canara Bank, Kotak Mahindra Bank, HDFC, Punjab National Bank, Utkarsh Small Finance Bank, and State Bank of India, Union Bank of India can access UPI Lite via the BHIM app.
What is the UPI Lite transaction limit?
UPI Lite has been specifically designed for low-value transactions. So, the maximum amount of transaction allowed is Rs. 200. The good thing is that no UPI PIN is required for payments under Rs. 200. The maximum balance allowed in the UPI Lite wallet at any point in time is Rs. 2,000.
UPI vs UPI Lite
Following is a table summarising the main differences between UPI and UPI Lite:
| UPI | UPI Lite |
|---|---|
| UPI can be used for performing high-value as well as low-value transactions. | UPI Lite has been specifically designed for performing low-value transactions only. |
| The maximum transaction limit is Rs. 2 lakh | Maximum transaction limit is Rs. 200 and the maximum Rs. 2000 can be kept as a UPI Lite balance at a time. |
| The PIN is mandatory to validate transactions. | No PIN is necessary. |
| UPI can be used by customers of more than 100 banks in India. | UPI Lite can be used by customers of eight banks only. |
| It is relatively more time-consuming than UPI Lite as a PIN has to be entered. | It is a very fast method of fund transfer. |
You are now familiar with both the platforms UPI vs UPI Lite and their features. To summarise and sign off the debate of UPI vs UPI Lite, UPI is right for you if you frequently perform high-value transactions (within Rs. 20,000). On the other hand, if you want to be quick and save time while performing low-value transactions, then UPI Lite is a better option as it does not require you to enter any PIN.
