The Reserve Financial institution of India has elevated the utmost restrict of an offline cost transaction from Rs 200 to Rs 500 with a purpose to encourage the usage of the UPI-Lite pockets in areas the place web connection is proscribed or unavailable. The combination restrict for offline transactions on a cost instrument, alternatively, stays at Rs 2,000 always.

The RBI launched a notification that said “As introduced within the Assertion on Growth and Regulatory Insurance policies dated August 10, 2023, the higher restrict of an offline cost transaction is elevated to Rs 500. Different directions talked about within the framework shall proceed to stay relevant as earlier than,”.

Based on reviews, this might allow faster, extra dependable, and contactless funds for small-value on a regular basis purchases, transit funds, and different purposes by eliminating the requirement for two-factor authentication for small-value transactions.

Additionally Learn: Important Cash Safety Ideas Staying Protected Amid Rising UPI Scams

What’s UPI Lite?

UPI Lite is an on-device pockets performance that enables customers to make real-time small-value funds without having to enter their UPI PIN.

How does UPI Lite work?

Cash should be despatched out of your checking account to The app’s pockets. This quantity could then be used to make funds from the pockets utilizing UPI Lite.

Dr. Soumya Kanti Ghosh, Group Chief Financial Advisor, State Financial institution of India mentioned “Each UPI lite and NCMC card work as a pockets and the pre-loaded cash in App/Card will be spent close to offline mode, i.e. debit (funds) will be made with out an Web connection and credit into the account shall be completed on-line. Because the NCMC card can be utilized at ATMs, on-line funds, and many others., the rise in transaction restrict to Rs 500 will improve the usage of cash-less transactions by way of UPI lite and NCMC card,”.

Additionally Learn: A Step-by-Step Information For Making UPI Funds Abroad