RBI Increases UPI Lite Transaction Limit to Rs. 500, Proposes AI-Powered ‘Conversational Payments’

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The Reserve Bank of India (RBI) recently made an important announcement regarding offline UPI payments. They have decided to raise the transaction payment limit for UPI Lite in offline mode. Previously set at Rs. 200, this limit will now be increased to Rs. 500. UPI Lite was initially introduced in September 2022, offering users the ability to carry out transactions of smaller amounts in offline mode. This feature gained popularity and was adopted by various platforms like PhonePe, Paytm, and Google Pay.

RBI Governor Shaktikanta Das shared this news during a press conference. Along with the UPI Lite limit increase, they are also proposing some other notable changes. One of them is the concept of "Conversational Payments." This entails utilizing AI-powered systems to facilitate payments through conversations. While specific details about this feature are still scarce, it's expected to offer a more intuitive way of making payments. This AI-driven functionality will debut in Hindi and English, eventually expanding to include other Indian languages. 

All these moves underscore RBI's efforts to further enhance the convenience and accessibility of digital payments, making them smoother and more user-friendly.

Furthermore, the Reserve Bank of India (RBI) has announced another significant update – the introduction of offline payments on UPI using Near Field Communication (NFC) technology, facilitated through the 'UPI-Lite' on-device wallet. This enhancement is particularly advantageous for users in areas with limited internet connectivity, as it enables UPI transactions even without a strong network connection.

Notably, Google Pay had already taken a step in this direction by recently introducing UPI Lite services on its platform. Transactions conducted via UPI Lite on Google Pay simplify the process by not requiring a UPI PIN; a single tap is sufficient to complete the payment. One of the standout features of UPI Lite is its ability to function offline, as it doesn't solely rely on real-time bank transactions. This development has the potential to revolutionize digital payments, offering a seamless and accessible solution for users, even in scenarios where internet access is restricted.