UPI Lite X | UPSC

UPI Lite X mind map
Recent News
Launched
During Global Fintech Fest 2023
Why
For offline transactions
In areas with poor network coverage
What
Enables money transfers
Without internet connectivity
Uses Near Field Communication (NFC)
Compatible Devices
Must support NFC
Simplifies low-value transactions
Security
Requires NFC authorization
Transaction Limits
Below Rs 500
No UPI PIN required
Maximum daily transfer
Rs 4,000
Upper limit per transaction
Rs 500
Total wallet balance limit
Rs 2,000 at any time
Account Requirement
No bank account needed
Transaction Methods
QR codes
UPI ID
Other UPI Products
UPI Tap & Pay
Credit Line on UPI
Hello! UPI
Bhashini program
BillPay Connect
Where
India
NPCI introduced
Who
Reserve Bank of India
Launched UPI Lite X
National Payments Corporation of India (NPCI)
Developed UPI Lite X
How
NFC for Transactions
Between on-device wallets
Connectivity
No internet required
Proximity Requirement
Sender and receiver must be close
Pros/Significance
Faster transactions
Broadens demographic access
Suitable for low-value transactions
Cons and/or Challenges
Limit on transaction amounts
Could restrict usage for larger payments
Way Forward
Potential Expansion
As per NPCI's discretion

UPI Lite X is a revolutionary payment system launched by the Reserve Bank of India at the Global Fintech Fest 2023. It’s designed to facilitate offline money transactions in areas with poor network coverage. This system, which operates using Near Field Communication (NFC), allows users to transfer money without an internet connection and a bank account. UPI Lite X stands out by enabling faster, low-value transactions (below Rs 500 without UPI PIN, with a daily limit of Rs 4,000 and a wallet balance limit of Rs 2,000) and broadens financial access to a larger demographic. It’s a part of a suite of new UPI-related products aimed at enhancing digital payments in India.