Rs 500 limit for offline digital payments
RBI on Thursday enhanced the upper limit of an offline payment transaction to Rs500 from the existing Rs200 to promote the use of UPI-Lite wallet in areas where internet connectivity is weak or not available
image for illustrative purpose
Mumbai: RBI on Thursday enhanced the upper limit of an offline payment transaction to Rs500 from the existing Rs200 to promote the use of UPI-Lite wallet in areas where internet connectivity is weak or not available.
However, the total limit for offline transactions on a payment instrument remains Rs2,000 at any point in time. “The upper limit of an offline payment transaction is increased to Rs500,” the RBI said in a circular on ‘Enhancing transaction limits for Small Value Digital Payments in Offline Mode.’
To increase the speed of small-value transactions on UPI, an on-device wallet called UPI-Lite was launched in September 2022 to optimise processing resources for banks, thereby reducing transaction failures. The product has gained traction and currently processes more than 10 million transactions a month. Earlier this month, the RBI had proposed to facilitate offline transactions using Near Field Communication (NFC) technology to promote the use of UPI-Lite.
