Difference between UPI123 and UPI Lite: UPI123Pay and UPI Lite work without internet, then what is the difference between the two?
Reserve Bank of India (RBI) Governor Shaktikanta Das launched UPI Lite on 20 September 2022 to speed up and simplify UPI payments. Through this, transactions up to Rs 200 can be done without entering the UPI PIN.
Earlier on March 8, UPI123Pay was launched. Its purpose is also to make digital transactions easy for the common people. In such a situation, many people are getting confused between UPI lite and UPI123. Let us understand what is the major difference between UPI Lite and UPI123:
What is UPI123?
UPI was introduced by RBI to ease cash-based transactions in India. Then its use was possible only through smartphone . UPI was unavailable for a large non-smartphone population. To solve this problem RBI introduced UPI123Pay.
With the help of UPI123, the user can also make UPI payments from feature phones . Mobile app or internet is also not required for payment. Only the mobile number of the user is required to be linked with the bank account . RBI expects that UPI123 will increase the use of digital payments in villages.
What is UPI Lite?
UPI Lite has been brought in to make digital payments secure and easy to make small transactions. It is an on device wallet. A maximum of Rs 2000 can be kept in the UPI Lite app and a maximum payment of Rs 200 can be made without entering the UPI PIN. While making such payment, the money will not be deducted from the account but from the wallet. But the receipt will be directly in the account.
NPCI said in a press release that in the first phase, UPI Lite will process transactions in almost offline mode i.e. no internet is required for making real-time payments through the app. NPCI has said that in future UPI Lite will be made completely offline so that the customer does not need internet for transactions.
