Paytm UPI Lite allows Rs 500 per transaction without PIN: Details here

Tired of entering your PIN for every UPI payment, no matter how small? Paytm has a solution. One97 Communications, the company behind Paytm, has introduced the UPI Lite wallet. This new feature aims to streamline payments, especially for low-value transactions.

What is Paytm's UPI Lite wallet?

Paytm’s UPI Lite Wallet is designed for quick and easy payments without needing to enter a PIN, said Paytm in a press release. It allows users to make instant transactions of up to Rs 500 each. Users can add up to Rs 2,000 to their wallet twice a day, giving a daily total of Rs 4,000.

Benefits of Paytm UPI Lite

Paytm describes the wallet as an essential tool for everyday transactions. A spokesperson said, "Paytm UPI Lite improves the payment experience, allowing for faster transactions at local stores, street vendors, and for regular purchases while keeping bank statements clear."

How to enable UPI Lite on Paytm

Here are the steps to activate UPI Lite on the Paytm app:

1. Open the Paytm app and click on the ‘UPI Lite Activate’ icon.

2. Select the bank account you want to use with UPI Lite.

3. Enter the amount you wish to add to UPI Lite.

4. Validate with your MPIN to create your UPI Lite account.

5. Your UPI Lite account is now set up for easy, one-tap payments.

Using UPI Lite

You can use UPI Lite by scanning any UPI QR code, entering a mobile number, or selecting a contact. The integration with major banks ensures a reliable payment experience. "The collaboration between One97 Communications Limited and leading Payment System Providers like Axis Bank, HDFC Bank, State Bank of India, and YES Bank ensures a robust and reliable framework," stated Paytm.

Transaction limits and usage

UPI Lite is designed for small transactions. According to the National Payments Corporation of India (NPCI), the limits are:

— Per transaction: Up to Rs 500

— Daily usage: Up to Rs 4,000

— Maximum balance: Rs 2,000

Fintechs and banks supporting UPI Lite

Paytm is not the only one offering UPI Lite. Other fintech companies like PhonePe, Google Pay, Navi, and Groww also provide this feature.

However, not all banks support UPI Lite. On Paytm, it is supported by Canara Bank, Central Bank of India, HDFC Bank, Indian Bank, Kotak Mahindra Bank, Punjab National Bank, State Bank of India, and Axis Bank. In total, 34 banks offer UPI Lite, according to the NPCI.

UPI vs UPI Lite: Key differences

Product

UPI: A 24/7 system for real-time bank-to-bank transactions.

UPI Lite: An on-device account for quick transfers to bank accounts, no PIN needed.

Transaction limit

UPI: Up to Rs 1 lakh per day.

UPI Lite: Up to Rs 4,000 per day, Rs 500 per transaction.

Number of transactions

UPI: Maximum of 20 transactions per day.

UPI Lite: Unlimited transactions per day, each capped at Rs 500.

Fund transfer

UPI: Can send and receive money.

UPI Lite: Only sends money; received funds go to the linked bank account.

PIN requirement

UPI: Requires a 4-6 digit PIN for each transaction.

UPI Lite: No PIN required.

Transaction record

UPI: Transactions recorded in the bank passbook.

UPI Lite: Transactions not recorded in the passbook; SMS confirmation provided.