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Business News/ Money / Personal Finance/  UPI vs UPI Lite: Transaction limit, other key differences between these two India's digital payment systems explained
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UPI vs UPI Lite: Transaction limit, other key differences between these two India's digital payment systems explained

UPI and UPI Lite are two digital payment systems in India. UPI is comprehensive, while UPI Lite is simplified for basic functionality

UPI and UPI Lite are both revolutionary in their own right. (iStock)Premium
UPI and UPI Lite are both revolutionary in their own right. (iStock)

UPI vs UPI Lite: United Payments Interface (UPI) and UPI Lite represent two facets of digital payment systems. UPI, a comprehensive platform, enables seamless transactions, linking multiple bank accounts, and offers a wide range of services. On the other hand, UPI Lite is a simplified version, catering to users seeking basic functionality. It's like a basic mobile phone with call and text capabilities. 

What is UPI?

UPI is a 24X7 instant payment system that allows you to transfer money in real time between two bank accounts.

What is UPI Lite?

 UPI Lite is an on-device wallet feature that allows users to make real-time small-value payments.

"UPI and UPI Lite are both revolutionary in their own right. While UPI has transformed the digital payment landscape in India, UPI Lite is set to take it a step further by making digital transactions accessible to every Indian, irrespective of their internet connectivity. UPI Lite will give more wings to UPI transactions, expanding the reach and impact of digital payments. It’s not about one versus the other, but about how both can coexist to accelerate financial inclusion in our country," said Amit Nigam, Executive Director & COO at BANKIT

Difference Between UPI Lite and UPI?

UPI Lite differs from UPI in various ways. Here are some of the significant differences between UPI Lite and UPI:

Dr. Navneet Gupta, Founder and CEO of YPay said that UPI Lite focuses primarily on fund transfers and payments, omitting some advanced features. “While UPI offers versatility, UPI Lite provides simplicity, ensuring accessibility for all, regardless of tech-savviness. Considering that feature phones still constitute 50% of the market, this will give a boost to payments where internet penetration is low," said Navneet Gupta.

Moreover, in a country like India, where a significant portion of the population resides in Tier-3/4 cities and villages, UPI Lite can work wonders, he added.

UPI vs UPI Lite: Who can use it?

Customers of all UPI Member banks with NPCI can use UPI via TPAP applications like BHIM, Google Pay, Paytm, PhonePe, etc., or mobile banking apps of member banks.

UPI Lite feature has been enabled on the BHIM app and some other TPAPs like PayTM. Currently, customers of eight banks can use this facility.

UPI vs UPI Lite: How to check the transaction history?

UPI Lite customers receive an SMS daily containing the history of UPI Lite transactions carried out during the day from the bank. UPI users can keep track of their transactions through the transaction history option on the UPI mobile application

UPI vs UPI Lite: Transaction Limit

“The maximum amount that can be transferred in a day from a bank account via UPI is Rs. 2 Lakhs. A total of 20 transactions can be done from a bank account using UPI in a span of 24 hours. On the other hand, UPI Lite users can transfer a maximum of Rs. 4,000 in a span of 24 hours. There is no limit to the number of transactions done through UPI Lite, however, the maximum limit of a transaction is Rs. 200," said Mehul Mistry, Global Head - of Strategy, Digital Financial Services & Partnerships, Wibmo, a PayU company


A 4 to 6-digit PIN is mandatory for UPI transactions. However, you don't need a PIN to send money via UPI Lite, said Mehul Mistry.

UPI vs UPI Lite: Sending money

As per Mehul Mistry, one can send money P2P and do P2M payments using both UPI and UPI Lite.

UPI vs UPI Lite: Receiving money

With UPI one could receive money as well. However, with UPI Lite, only debit from your wallet is permitted.

Disclaimer: The views and recommendations made above are those of individual analysts, and not of Mint. We advise investors to check with certified experts before making any investment decisions.

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Sangeeta Ojha
A business media enthusiast. Writes on personal finance, business and banking.
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Updated: 03 Oct 2023, 02:38 PM IST
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