How to set up UPI Lite X for offline transactions
The National Payments Corporation of India (NPCI) has recently launched UPI Lite X, an improved version of UPI Lite, which enables users to carry out offline transactions and supports "Tap and Pay" using NFC technology. With UPI Lite X, users can transfer funds from their savings account to an on-device wallet and use the money for P2M and P2P transactions up to Rs. 500 without using UPI PIN. Here's how to set up the payment procedure for UPI Lite X.
Step-by-step process for setting up UPI Lite X
To get started with UPI Lite X, users need an Android smartphone with NFC support; iPhones aren't supported due to Apple's restrictions on third-party NFC payments. Both sender and receiver should have the latest version of the BHIM app installed on their NFC-supported Android devices. Users can activate UPI Lite X in the BHIM app by tapping the "Enable" button in the UPI Lite X Balance menu, granting permission for offline transactions, and add funds to their UPI Lite wallet.
How to use UPI Lite X for offline transactions
UPI Lite X transactions can also be completed offline without internet connectivity on both the sender's and receiver's devices. To make a transaction, enable NFC on both devices, open the BHIM app on the sender's phone, click the "Tap and Pay" button, enter the transaction amount, and confirm. The sender's device will then enter transaction mode, and users must bring both devices close together until the sender's phone displays a prompt "Device Connected." The transaction will then be successfully completed.
Limits and wallet balance
The transaction limits for UPI Lite X are the same as those for UPI Lite: a maximum individual transaction value of Rs. 500, a daily limit of Rs. 4,000, and a maximum permissible wallet balance of Rs. 2,000. Balance received using UPI Lite X is stored in the receiver's UPI Lite wallet, and users must manually transfer it from their UPI Lite wallet to their savings bank account after receiving money through UPI Lite X transactions.
UPI Lite X could boost contactless payments in India
UPI Lite X has the potential to bridge the gap between digital payments and POS machines while encouraging smartphone manufacturers to include NFC support in budget-friendly devices. As more countries express interest in adopting UPI, the Tap and Pay functionality, along with the ability to process offline transactions in real-time will serve as significant incentives for global expansion of UPI. Currently, UPI Lite X is exclusive to the BHIM App, but it might roll out on other payment apps soon.
