What is UPI Lite?

UPI Lite is a digital account designed to facilitate low-value transactions. This

feature will make small ticket transactions easier and quicker. The maximum UPI
Lite transaction limit is Rs 200. Paytm, a leading player in the market, has
introduced UPI Lite which enables users to carry out transactions up to Rs. 200,
with a maximum cumulative limit of Rs. 4000.

 The UPI Lite app has a maximum balance limit of Rs 2000 at any given time.
 A maximum of Rs 2000 can be added to the UPI Lite account twice daily.
 This allows for a cumulative transaction limit of Rs 4000 in a day.
 Users can make multiple transactions within the maximum UPI Lite
transaction limit.

A user can load Rs 2000 in the UPI Lite app and utilize the available balance to
conduct transactions until it is fully utilized. The maximum allowed value per
transaction is Rs 200. Therefore, a user can make multiple transactions until the
limit is reached. For example, a user may conduct 6 transactions worth Rs 200, 4
transactions worth Rs 150, and 20 transactions worth Rs 10 in a day, exhausting
the UPI Lite transaction limit of Rs 2000. However, if the user requires further
transactions on the same day, they may add another Rs 2000 to their UPI Lite
account. In addition, UPI Lite streamlines the transaction process by eliminating
the need to enter a 4 or 6-digit PIN.

Advantages of UPI Lite

Here are some of the significant benefits of UPI Lite:

 Less Clutter on Bank Passbook – When small-value transactions, which are

frequent and high-volume, will be made using UPI Lite, there will be fewer
transaction details on the bank Passbook. It will comprise only the major and
top-up transactions done using UPI Lite. Hence, users can have a relatively
clean and decluttered Passbook.
 Easy Small Value Transactions – This advantage of UPI Lite will cater to
the daily transactional requirements of the common people. Small purchases
ranging from Re 1 to Rs 200 that are a part of daily routine will become faster
and more convenient.
 No Cap on Number of Transactions – There is no cap on the number of
transactions a user can make using UPI Lite. Since there is no restriction on
 the number of transactions, given the cumulative daily amount, a user can
make multiple payments of a low amount.
 Use Without PIN – With UPI Lite, users are not required to enter a 4 or 6-
digit PIN like they would with other payment methods such as debit or credit
cards, or net banking. This means that for small, regular transactions, users
can avoid the hassle of entering a PIN.

Under its O2O model, Paytm Mall has signed up with sellers who were already
using Paytm payment services, therefore bringing them online to list and sell their
products on Paytm Mall
This, the company claims, has helped drastically reduce cost as the company does
not need to own and operate its own warehouse.
Secondly, the sellers use the local courier services for delivery, thereby bringing
down the time and cost of deliveries.
Thirdly, Paytm Mall claims that the cost of acquiring sellers has gone down as
most of these sellers were already accepting payments using Paytm.

Here I am sharing some analysing reports of macro environment factors impact on 4Ps of Paytm

If we see Govt norms, regulation: While RBI limits on notes, and while demonetization implemented ,
Paytm have to adapt accordingly and drive the people's money transaction accordingly; there is the
change in coins and notes and also continuous economic growth which means paytm has to support
to the national mission here; support different income groups also is the challenge .

while technology growth is a there how Paytm is adopting the technology and changing paytm
product is another challenge.

carbon emission while an important factor so how Paytm is sustaining it’s footprint and helping the
environment that is a challenge .

Understanding people's age- taste-demand, household income- how Paytm values the preference is
a challenge.

Placing Paytm product in PAN India requires to accept by using digital media; and here for every part
of macro environment it is a challenge as paytm has to prove why it is best in it’s category.

People are most interested on Price means zero joining fee, and less maintenance while scarcity from
lower currency was there.

Considering macro environment factors , More promotions like touch-free uses, which people can
attract, no physical coins need, different lending promotion, advanced technology in transaction, and
influence based social marketing / billboard campaigns are more important in promotion sector to
attract more people.

Price: