New Delhi: The Reserve Bank of India (RBI) on Friday announced the introduction of the UPI LITE e-mandate to create a more seamless payment ecosystem. (UPI Lite was introduced in September 2022 to enable small value payments quickly and seamlessly through an on-device wallet.)
How will the change benefit people?
With the new facility, customers will be able to automatically replenish their UPI Lite wallets if the balance goes below the threshold limit set by them. This will further enhance the ease of making small-value digital payments.
What Is UPI LITE?
- It is a payment solution designed to handle low-value transactions below Rs 500.
- It utilises the reliable NPCI Common Library (CL) application to process these payments, integrating seamlessly with the existing UPI ecosystem on mobile phones to ensure consistency, compliance, and broad acceptance.
- It aims to provide a user-friendly experience for small transactions, bypassing the need for real-time processing by the remitter bank’s core banking systems, while still maintaining adequate risk mitigation.