Hello and Namaste Everyone,
U P I is one of the most used payment methods in India. It's convenient and easy to use and can be used on mobile and there are various applications available for this. The government application is also available along with many fintech and even Google has an application called Google Pay. U P I is so popular that even other countries have adopted this payment technology. The transaction settlement happens instantly in real time and there are two ways we can follow to make the payment. The first is we can pay by scanning the QR at a merchant outlet or we can also send money to individuals by mobile number or virtual payment address.
UPI Lite is one of the useful features and this is only for merchant payment. Because in UPI payment every transaction requires authentication, we need to enter the pin every time, which is sometimes not convenient. So to address this problem UPI lite was introduced. We need to manually add money in UPI lite; this balance will be used to make payment. There is no PIN required for authenticating in UPI lite payment but we can not have a balance of more than Rs 500 at any point in time currently.
UPI Lite was designed for users to make payments below ₹500 without needing to enter a PIN. It works without tapping into the bank's core systems.
This payment method is convenient and easy to use because we just need to scan and enter the amount to make a payment. It does not ask for the PIN but we need to add the money manually and that is another part that requires manual intervention. Now the government is addressing this issue also and they are going to introduce an auto top-up feature. With this new feature, they are also going to increase the limit which will be up to 2000 rupees at any point in time.
When a UPI Lite balance dips below a certain threshold, the app will automatically reload the account with the chosen amount. This is meant to make payments smoother and faster without exceeding the ₹2,000 limit.
This is going to make things easy for many users and with UPI lite they need not use their bank account every time. Because of UPI there are so many transactions in the bank account as in a normal scenario every payment is deducted from the bank account only. When we go for the UPI lite then the scenario changes because the amount gets deducted from the wallet and we need to add one in the wallet for all small payments. By now it's clear that this function is only for small payments. I use this feature sometimes but because mostly I use a Rupay credit card it is not required for me most of the time undoubtedly it is a good feature to have. We can avoid using a bank account unnecessarily multiple times instead we can just top up once and keep on using it until the balance is there.
With auto top-up in UPI, things are going to be even easier and the limit is also going to be increased. This way you just will be able to pay conveniently without worrying about using the bank account and it will also save time because a pin will not be required. This is a helpful feature that we are going to receive next month and as of now, it is expected to be released on October 31.
Thank you so much
Stay Safe
Posted Using InLeo Alpha
