Stay connected even when you’re offline with UPI Lite X – the latest feature on the BHIM App. In this comprehensive guide, we’ll explain what UPI Lite X is, how to set it up, and how to harness its power for offline transactions.

Understanding UPI Lite X

The National Payments Corporation of India (NPCI) has introduced an innovative feature called UPI Lite X, designed to enhance your digital payment experience. This upgraded version of UPI Lite offers the convenience of performing offline UPI transactions, making it easier than ever to manage low-value payments. Additionally, UPI Lite X supports the Tap-and-Pay functionality, allowing you to transfer money using Near Field Communication (NFC) without an internet connection.

The Significance of UPI Lite X

India has solidified its position as a global leader in digital payments, with UPI playing a pivotal role. To further streamline the process of low-value transactions and eliminate the need for entering a UPI PIN, NPCI introduced UPI Lite last year. Building upon this success, UPI Lite X takes things to the next level by enabling offline transactions, making it a game-changer for users who may find themselves without internet connectivity.

Key Features and Benefits

Offline Transactions: The most significant feature of UPI Lite X is its ability to conduct transactions without an internet connection. This is particularly useful in areas with unreliable or limited connectivity.

Tap-and-Pay: UPI Lite X leverages NFC technology, enabling you to make payments by simply tapping two NFC-enabled phones together. This feature enhances the convenience and speed of UPI transactions.

Compatibility: Currently, UPI Lite X is exclusively available on the BHIM App. However, it is expected to roll out on other popular payment apps like PhonePe and PayTM in the near future.

Transaction Limits for UPI Lite X

It’s essential to be aware of the transaction limits when using UPI Lite X:

Maximum Individual Transaction Value: Rs 500

Daily Limit: Rs 4000

Maximum Permissible Wallet Balance: Rs 2000

Setting Up UPI Lite X: A Step-by-Step Guide

Before you can enjoy the benefits of UPI Lite X, ensure your Android smartphone supports NFC. Unfortunately, iPhones do not support UPI Lite X due to Apple’s restrictions on third-party NFC payments. Here’s how to set up UPI Lite X:

Ensure Compatibility: Both the sender and receiver must have the latest version of the BHIM App installed on their NFC-supported Android devices.

Activation: Open the BHIM App and navigate to the ‘Enable’ button in the UPI Lite X Balance menu.

Offline Transaction Permission: Toggle the tickbox to grant permission for offline transactions and tap ‘Enable Now.’

Funding Your Wallet: The BHIM App will prompt you to add funds to your UPI Lite wallet. Enter the desired amount.

Activation Confirmation: After adding funds, tap ‘Enable UPI Lite X,’ and you will be prompted to enter your UPI PIN.

Ready to Go: With funds in your wallet, you are now ready to utilize UPI Lite X for Tap-and-Pay and offline transactions.

Using UPI Lite X for Tap-and-Pay and Offline Transactions

Once UPI Lite X is set up, you can make transactions even without an internet connection. Here’s how to perform a Tap-and-Pay transaction:

NFC Activation: Ensure NFC is enabled on both the sender’s and receiver’s Android devices.

Initiate Transaction: Open the BHIM App on the sender’s phone and click on ‘Tap & Pay.’ Enter the transaction amount and add any necessary remarks.

Confirmation: Tap ‘Confirm.’ The BHIM App on the sender’s device will enter transaction mode. Keep the screen active.

Receiver’s Device: Unlock the screen on the receiver’s phone.

Tap to Complete: Bring the sender’s device close to the receiver’s device and gently touch it. The sender’s phone will display a ‘Device Connected’ prompt, indicating a successful UPI Lite X transaction.

Important Note: If a UPI Lite X transaction is conducted offline, the receiver must connect their device to the internet within four days to ensure the proper receipt of funds.

What’s on the Horizon?

NPCI is on the verge of introducing Tap-and-Pay QR codes for UPI payments. These QR codes will feature an embedded NFC chip and will be placed at merchant locations. Customers can follow the same procedure as described earlier to make payments by bringing their NFC-enabled phones near the NFC QR code.

In summary, UPI Lite X is a groundbreaking feature that bridges the gap between digital payments and point-of-sale systems. It not only facilitates convenient offline transactions but also incentivizes smartphone manufacturers to include NFC support in budget-friendly devices. With UPI gaining interest internationally, the Tap-and-Pay functionality and real-time processing of offline transactions offered by UPI Lite X could play a significant role in its global expansion.

FAQs

Is UPI Lite X safe to use? Yes, UPI Lite X employs the same secure protocol as standard UPI transactions, ensuring the safety of your payments.

What happens if my UPI Lite X transaction fails? UPI Lite X transactions, being processed locally on your phone, will not deduct money from your UPI Lite wallet in case of a failed transaction. You don’t need to worry about your funds being stuck due to failed transactions, as there is no intermediary in UPI Lite X.

Which banks support UPI Lite X? Currently, UPI Lite X is supported by 11 banks in India, including Canara Bank, HDFC Bank, State Bank of India (SBI), Kotak Mahindra Bank, Axis Bank, Punjab National Bank, Indian Bank, Union Bank, Utkarsh Small Finance Bank, Central Bank of India, and Paytm Payments Bank.

Do I need a RuPay Debit Card to use UPI Lite X? No, UPI Lite X can be enabled with various types of debit cards, including RuPay, VISA, Mastercard, and others.

Which apps support UPI Lite X? As of now, only the BHIM App supports Tap-and-Pay and offline transactions through UPI Lite X. However, this feature is expected to be available on third-party apps like PhonePe and Paytm in the coming weeks.

Via @ MySmartPrice