Users may make real-time small-value payments without entering their UPI PIN by using the on-device wallet functionality known as UPI Lite. The Reserve Bank of India raised the maximum amount that may be spent in an offline payment transaction from Rs 200 to Rs 500 in order to encourage more people to use the UPI-Lite wallet in locations with limited or non-existent internet connection. On the other hand, a payment instrument’s total cap for offline transactions is always Rs 2,000.

The maximum amount for an offline payment transaction has been raised to Rs 500, as declared in the Statement on Development and Regulatory Policies on August 10, 2023. The framework’s other directives shall continue to be applied in the same manner. Doing away with the requirement for two-factor authentication for small-value transactions will enable quicker, more dependable, and contactless payments for everyday purchases of modest value, transport payments, and other uses.

Our bank account must be used to send funds to the app’s wallet. From the wallet, this sum may then be used to make payments using UPI Lite. Both UPI lite and the NCMC card function as wallets, and the pre-loaded funds may be used in close to offline mode—that is, debit (payments) can be performed without an Internet connection, while credits into the account are made online. The increase in transaction limit to Rs 500 would promote the usage of cashless transactions using UPI light and NCMC cards as the NCMC card may be used at ATMs, online payments, etc.