Pay without UPI Pin: How Does UPI LITE Work



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What is UPI LITE ?

This facility has been recently launched by NPCI – the authority behind UPI payment system development – with the aim to make digital transactions faster and hassle-free, adding a new feature to make low-value payments without entering UPI PIN.

UPI LITE is a service that allows users to make low-value transactions up to ₹200 with one click without entering UPI pin on the apps that support UPI payment. However UPI LITE has not been rolled out on all the apps, you can start using it on apps such as Paytm.

How to use UPI LITE on apps?

To start using UPI LITE, you will first have to add sufficient money to your UPI LITE on your device (ie; Paytm Wallet, BHIM, etc.). UPI LITE is an on-device wallet for frequent low-value transactions.

How to enable UPI LITE on Payment apps?

Below are the steps to activate UPI LITE on your smartphone. Login to BHIM UPI or Paytm (or any other app where this feature has been rolled out by the developer).

Click on UPI LITE click on the amount to add in order to enable UPI LITE and select the bank (if you have more than one) to add money from.

Add the required amount that will be reflected on the on-device wallet. Now, you can scan UPI QR codes and pay with one click without entering the UPI pin.

To enable UPI LITE

  • User has to open his/her UPI App
  • On home screen of the App, user will get the option to enable UPI LITE. Click on the option
  • User reads and accepts the terms & conditions
  • User enters the amount to add in UPI LITE and select the Bank account
  • User enters UPI PIN
  • UPI LITE enabled successfully!

For making seamless transactions via UPI LITE

  • User opens the app
  • User chooses to pay.
  • User enters the amount
  • Money Sent Successfully without UPI Pin

Benefits of UPI Lite

  • Improved success rate for UPI transactions
  • Less infrastructure load on Remitter Bank CBS
  • Uncluttered Passbook for users
  • One click single factor authentication for UPI transactions of value less than ₹ 200

What Banks do support UPI LITE?

  • Canara Bank
  • Central Bank of India
  • HDFC Bank
  • Indian Bank
  • Kotak Mahindra Bank
  • Punjab National Bank
  • State Bank of India
  • Union Bank of India
  • Utkarsh Small Financial Bank

UPI LITE is an amazing update(features) for low-value frequent daily transactions. This on-device wallet can work properly when banks have a low success rate. This feature is currently available on Paytm and BHIM app and is expected to be rolled out on other third-party UPI payment apps soon.

There is also news that users can use this feature without the internet though it is not clear yet how will it work.

UPI LITE balance should be treated equivalent to cash and in case user changes the mobile device, user should disable the LITE account from old mobile device & then enable a new LITE account on the new mobile device. This shall ensure that the LITE balance lying in the older mobile LITE account is pushed back to user account.

In case user lost the device with LITE account and balance (active LITE account), user can approach their Bank and bank after doing due diligence can refund money back to the user account.

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