What is Unified Payment Interface (UPI)?

UPI is the indigenous digital payment system in India

that was conceptualised and operated by the National
Payments Corporation of India in.
Seven years on, UPI today holds 96.5 per cent market
share in overall mobile payments and 56 per cent
(volume-wise) in person-to-merchant payments.
Smartphone and an internet connection are a must to
use the UPI app.
UPI Lite is said to be the feature phone version,
specifically for low-denomination transactions.
Given that about 75 per cent of the total volume of retail
transactions in India (including cash transactions) are
below ₹100 each and 50 per cent of UPI transactions are
for ₹200 each.
 What is UPI Lite?
UPI Lite will initially target transactions of ₹200 or less.
To begin with, the app will be designed only for debit
transactions — that is, to send money from the app.
The facility for credit transactions or receiving money
through the app is planned in Phase-2.
 How does it work?
UPI Lite is an ‘on-device wallet’.
Here, users will have to allocate funds from their bank
accounts to the app and the amount will be parked in
the user’s bank in an escrow or pool or designated
account for the app.
The UPI Lite balance limit is set at ₹2,000.
 How does it work?
The upper limit for payment is currently ₹200.
The key differentiating factor between a regular digital
wallet and UPI Lite is that an existing UPI customer
need not repeat the KYC process to use UPI Lite.
UPI LITE is a New Payment Solution.
It process Low Value Transactions that
have been set at below ₹ 200.
UPI LITE solution is created to process low value
transactions having limit of INR 200 Without UPI Pin.
In 2022, NPCI launched UPI Lite which is an 'on-
device' wallet.
Paytm has recently become the first prominent
payment application to introduce UPI Lite.
To make payments through UPI Lite, money has to
be loaded to UPI Lite Account from the user’s
linked bank account.
This UPI Lite balance can be used to make small
transactions of Re 1 to Rs 200.