UPI Lite – UPI without Internet – 21 FAQs

 UPI Lite – UPI without Internet – 21 FAQs

 

Summary: - UPI Lite will enable feature phone users to make use of the UPI networks and make use of the UPI networks and make digital payments directly from their bank accounts.

UPI Lite will enable feature phone users to access UPI networks and make digital payments straight from their bank accounts using their phones.

Reserve Bank of India defines offline transactions as “An offline digital payment means a transaction which does not require internet or telecom connectivity. Under this new framework, such payments can be carried out face-to-face (proximity mode) using any channel or instrument like cards, wallets, mobile devices, etc. Such transactions would not require an Additional Factor of Authentication (AFA)”

 

The following FAQs have been complied based on available information in public domain.

Please feel free any further FAQs in the comment section.

FAQ 01) Has NPCI released the UPI Lite guidelines?

Ans 01) UPI Lite guidelines to bank customers are yet to be released.

FAQ 02) When are guidelines expected to be released?

Ans 02) As on date, testing is in progress. Hopefully, once the testing is over and bugs highlighted in the testing are fixed, the guidelines may be released.

FAQ 03) Is there any Reserve Bank of India reference document for UPI Lite?

Ans 03) There is no specific RBI document in public domain. However, Reserve Bank of India   Framework for ‘Facilitating Small Value Digital Payments in Offline Mode’ released on 3rd January 2022 is a good reference document.

FAQ 04) Is UPI Lite a Digital Wallet?

Ans 04) Have to wait for the operational guidelines

FAQ 05) Is UPI Lite for both P2P (Person to Person) and P2M (Person to Merchant)

Ans 05) In my view, it is only for P2M. However, have to wait for the operational guidelines.

FAQ 06) Will account holders have to pay any charges to avail the UPI Lite product?

Ans 06) Have to wait for operational guidelines.

FAQ 07) Can UPI Lite transactions take place without a mobile phone?

Ans 07) Mobile phone is mandatory to complete UPI Lite transactions?  

FAQ 08) Will there be a separate UPI VPA (Virtual Payment Account) ID for UPI Lite transactions?

Ans 08) Have to wait for operational guidelines.

FAQ 09) Can an individual hold multiple UPI Lite Accounts.

Ans 09) Have to wait for operational guidelines.

FAQ 10) How will the UPI Lite transactions reflect in the bank account holder’s statement of account?

Ans 10) Have to wait for operational guidelines.

FAQ 11) Do customers have recourse to the Reserve Bank of India's – Integrated Ombudsman Scheme for grievance redress?

Ans 11) Yes, customers will have recourse to the Reserve Bank of India’s – Integrated Ombudsman Scheme for grievance redress.

FAQ 12) Will bank account holders receive real time SMS / Mail alerts of UPI Lite transactions from the bank?

Ans 12) Real time SMS / Mail alerts of UPI Lite transactions from the bank are not mandatory. Banks can send delayed SMS / Mails regarding UPI Lite transactions. The exact time gap will be clear after the operational guidelines are released.

 

FAQ 13) What is the upper limit of the UPI Lite transaction.

Ans 13) The maximum upper limit is INR200/-. However operational guidelines have to be awaited.

FAQ 14) Are remote transactions possible under UPI Lite channel.

Ans 14) No, remote transactions are not allowed under UPI Lite.  Only proximity transactions are envisaged.

FAQ 15) Will any changes be required at Merchant end to accept UPI Lite transactions?

Ans 15) Have to wait for operational guidelines.

FAQ 16) Is it mandatory for the Merchant’s UPI Lite acquiring terminal to be connected with the Internet or connected to a telecom network?

Ans 16) Have to wait for operational guidelines.

FAQ 17) Can utility bills (BBPS Billers) be paid via UPI Lite mode?

Ans 17) Yes, technically feasible, if the bill amount is below the set threshold level. However, have to wait for the operational guidelines.

FAQ 18) How can bank account holders activate UPI Lite?

Ans 18) Have to wait for operational guidelines.

FAQ 19) Can a bank account holder transact both on UPI and UPI Lite from the same mobile phone.

Ans 19) Yes, technically feasible, but have to wait for the operational guidelines.

FAQ 20) Will all UPI Issuer Banks offer UPI Lite?

Ans 20) Ah, a million-dollar question, will have to wait and watch

FAQ 21) Will UPI Lite be rolled all over India at the same time or will there be staggered rollouts?

Ans 21) Ideally, Pan India rollout at the same time is preferred to avoid customer dissatisfaction. At the same time, staggered rollout will enable NPCI / Banks / other participants to fix issues if any.

 

 

Please go through my December 09th , 2021 Blog post  - UPI “On-device” wallet – How it may look @ https://innovationinbanking.blogspot.com/2021/12/upi-on-device-wallet-how-it-may-look.html

 

Additional Reading Material:

Mint -  Govt testing UPI Lite to allow payments without internet @ https://www.livemint.com/technology/govt-testing-upi-lite-to-allow-payments-without-internet-11642965414132.html

 

 

Disclaimer: These are my personal views only. The bottom line is Safe ePayments. Nothing more- Nothing less