Published on: January 12, 2023
Why in news? Union cabinet approves incentive scheme for banks to promote digital payments
- The fund will be paid to banks in view of the lack of a Merchant Discount Rate (MDR) a commission on digital transactions for UPI and RuPay transactions.
- Financial assistance is mainly for sustainability of building digital payments infrastructure in the absence of payments needed to maintain them.
- It also promote UPI Lite and UPI 123PAY as economical and user-friendly digital payments solutions and enable further deepening of digital payments
About UPI Lite
- Parent Organization : National Payments Corporation of India (NPCI)
- Nature : UPI Lite is an ‘on-device wallet’ feature that will allow users to make real-time small-value payments.
- Transaction Limit: The upper limit is Rs 200. Total balance of the on-device wallet can be up to Rs 2,000.
- Is PIN mandatory?: No need a PIN to send money via UPI Lite
- Currently, only debit from wallet is permitted. All credits to UPI Lite will directly go to your bank account
- Who can use?: UPI Lite feature has been enabled on the BHIM app. Currently, customers of eight banks can use this facility
- SMS daily containing the history of UPI Lite transactions carried out during the day from the bank will be generated
- Parent organization : Jointly by NPCI and the RBI
- Suite of solutions developed for Non-Smart phone / feature phone users to use the UPI without internet connectivity.
- No requirement of Smart Phone and Internet
- Transaction is done through Interactive Voice Response
- Registration of account with UPI 123PAY, require a 4-6 digit UPI PIN.
- Customer have to enter UPI PIN every time he makes the transactions.
- Transaction Limit: Rs 1,00,000.
- multiple bank accounts cannot be linked on UPI123pay
How is UPI Lite different from UPI 123Pay?