RBI launches conversational, offline payments via UPI; raises UPI-lite limit to ₹500 per transaction

RBI proposes to increase UPI Lite per transaction payment limit to ₹500 and enable 'Conversational Payments' on UPI, 'UPI-Lite' on-device wallet and offline payments on UPI using NFC technology to further deepen digital payments in India. This will help in faster, reliable and contactless mode of payments for everyday small value payments.

The Reserve Bank of India on August 10 proposed to increase the per transaction payment limit to ₹500 for UPI Lite in offline mode and announced other measures to further deepen the reach and use of digital payments in the country.

Presently, a limit of ₹200 per transaction and an overall limit of ₹2,000 per payment instrument has been prescribed by the Reserve Bank for small value digital payments in offline mode, including for National Common Mobility Card (NCMC) and UPI Lite.

By removing the need for two-factor authentication for small value transactions, these channels enable faster, reliable, and contactless mode of payments for everyday small value payments, transit payments etc.

Explained | Daily limit on UPI transactions 

“Since then, there have been demands for enhancing these limits. To encourage wider adoption of this mode of payments and bring in more use cases into this mode, it is now proposed to increase the per transaction limit to ₹500,” RBI Governor Shaktikanta Das said.

The overall limit is, however, retained at ₹2,000 to contain the risks associated with relaxation of two-factor authentication and instructions in this regard will be issued shortly, he added.

With the objective of harnessing new technologies for enhancing the digital payments experience for users, Mr. Das said, it is proposed to enable ‘Conversational Payments’ on UPI, which will enable users to engage in conversation with AI-powered systems to make payments and introduce offline payments on UPI using Near Field Communication (NFC) technology through ‘UPI-Lite’ on-device wallet.