The Reserve Bank of India (RBI) has updated its framework for offline small-value digital payments, significantly increasing transaction limits for UPI Lite. The changes aim to simplify and enhance the usability of offline payments for everyday transactions.
As per the revised framework, the upper limit for a single UPI Lite offline transaction has been raised to ₹1,000, up from ₹500. Additionally, the total limit for a payment instrument has been increased to ₹5,000 from the previous ₹2,000.
These updated limits come into effect immediately, offering greater flexibility for users of UPI Lite.
The original framework, introduced in January 2022 and updated in August 2023, aimed to facilitate small-value digital payments in offline mode. UPI Lite allows transactions without internet connectivity, enabling faster and more convenient payments for low-value purchases.
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RBI’s statement in October 2024 had outlined these enhancements as part of its developmental and regulatory policies, reflecting its commitment to supporting digital payment growth. The update aligns with the central bank’s ongoing efforts to promote financial inclusion and expand the scope of digital payment systems.
The notification, issued under the Payment and Settlement Systems Act, 2007, will benefit a wide array of users, including those in areas with limited internet access.
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