RBI Increases UPI Offline Transaction Limit to ₹500

New Delhi: The Reserve Bank of India (RBI) has increased the offline UPI transaction limit to Rs 500 from the previous limit of Rs 500 within the overall cap of Rs 2000.

UPI Lite, introduced by the NPCI and RBI in September 2022, allows users to perform small-value transactions offline, reducing the impact of occasional processing failures.

To use UPI Lite, users must download a UPI Lite-enabled app, create a UPI Lite ID, and add funds to their UPI Lite balance. Additionally, the RBI is working on implementing “Conversational Payments” on UPI, enabling users to engage with AI-powered systems for making payments.

Another noteworthy development is the introduction of offline payments using Near Field Communication (NFC) technology through the ‘UPI-Lite’ on-device wallet. This move aims to enhance accessibility and simplify transactions, especially in areas with limited network access.

The central bank’s efforts are focused on expanding the use of digital payments in the country, promoting convenience for both individuals and businesses while addressing connectivity challenges through NFC technology.