UPI Lite X is another innovative product from NPCI, developed and launched to make UPI more accessible to users. This rich product aims to bring users (both payers and payees) with unstable network areas under the roof of UPI. This article aims a clear understanding of it:

What Is UPI Lite X?

UPI Lite X is one of the latest versions of UPI that takes the help of NFC (Near Field Communication) technologies to process payments instantly. It is an NPCI-developed product, and RBI launched it. RBI Governor Shaktikanta Das introduced it at the Global Fintech Fest of 2023.

As of now, UPI has made transactions easier for both the parties – sender and beneficiary; but, it is network-dependent. To conduct UPI transactions, the sender needs data. With the vision of freeing the users from this, they launched UPI Lite X. Previously, they launched UPI Lite which is an on-device wallet approach of UPI that seamlessly completes small-value transactions without PIN. To use it, users first need to enable this feature in the respective UPI apps, and then, add money in the Lite wallet from their account, and then transact with others from the wallet. This entire process has internet dependency.

UPI Lite X goes one step ahead in removing data dependency completely so that people from interior parts of India can use it. UPI's Lite X version processes the transfers with NFC technology and thus, it eliminates the internet requirements (mobile data or Wi-Fi).

Purpose

The purpose of UPI Lite X is to bring people from remote areas where the overall network connection is poor. People in rural areas can thus be a part of UPI with it.

Features

The features of UPI Lite X include:

• Completely offline money transfers
• Extensive use of NFC technology for easy, fast, and safe transfers
• Zero dependency on networks
• Remarkably low battery consumption 
• User-friendly interface

Daily Limits of UPI Lite X

Each transaction with UPI's Lite X version must not exceed the value of 500 rupees and the maximum limit of wallet balance is 2000. Moving on to the number of transactions, users can do 1 debit and 10 credit transactions per day.

How To Transact With UPI Lite X?

To transact with UPI's Lite X version, users need to do the following:

• 1. Download and install the UPI app that supports UPI Lite X
• 2. Complete the registration with mobile number and link the bank account
• 3. Authenticate the account
• 4. Set the PIN
• 5. Enable/activate UPI Lite X (must be available on the homescreen or settings)
• 6. Choose "Tap & Pay" option at the time of making an offline payment
• 7. Enter the amount
• 8. Tap the device on the NFC terminal/recipient’s device to complete the payment (no PIN needed)

Both parties must enable UPI's Lite X version during the payment and their devices must remain in a close range. Also, users must come online within 4 days of the transaction to receive the amount (if paid in offline mode). Payment details will be available when internet connection is restored.

Transaction Charges

Transactions made with UPI Lite X are absolutely free.

Is It Safe?

Yes, UPI's Lite X version is 100% safe. It does not use data; hence, it is not exposed to online fraud.

Who Can Use UPI Lite X – What Are The Requirements?

Offline transactions with UPI's Lite X version can be done only if the following conditions are met:

• 1. The devices of the sender and recipient must remain close to each other during the transaction
• 2. The devices must be compatible with NFC technologies

Important Factors To Note

• 1. Offline payments made with Lite X version are not bank-to-bank transfers; rather, these are wallet-to-wallet transfers.
• 2. These transfers do not appear in bank statements or passbooks
• 3. This feature is now available only in Android devices
• 4. Before uninstalling the app or changing mobile device, users have to disable it so that the balance in it reaches the bank account. If not done so, the remaining balance will go on hold and users have to contact the bank. Banks after due diligence will credit the amount to the user's account within 4 days.
• 5. In case of a lost or stolen mobile, the user has to reach out to the bank and claim a refund

Benefits of UPI Lite X

The benefits of UPI's Lite X version are:

• 1. Seamless transactions without an internet connection
• 2. Accessibility to a huge population residing in poor network areas”
• 3. Less failed and more successful payments
• 4. Transfers are faster as it is meant only for small-value amounts

UPI, UPI Lite, And UPI Lite X – A Side-by-side Comparison

	UPI	UPI Lite	UPI Lite X
Data dependency	Data needed	Data needed	Data not needed
Daily limits	Upto 1 lakh (depends on bank)	Updated wallet capacity - 5,000 (initially 2000) and maximum value per transaction – 1,000 (initially 500)	Wallet capacity 2000 and maximum value per transaction 500
PIN Dependency	PIN needed	PIN not needed	PIN not needed
Meant for	All types of P2P, P2M transactions, bill payments, etc.	Only small value transfers	Smaller value essential transfers when there is no network
Transfer type	Bank account to bank account	Wallet to bank account	Wallet to wallet

Conclusion

Though "Scan & Pay" is highly popular today because of UPI, several people from different parts of India are unable to access it because of network issues. "Tap & Pay" is going to resolve this problem from the grassroots level. UPI is already accepted in entire India. And, UPI's Lite X version will enhance this acceptance even more in the coming days.

Integrate PayG Payment Gateway and Accept Payments through UPI, Cards, Net-Banking, Wallets, etc.