Paytm Payments Bank introduces UPI LITE: How to use it
In a bid to make low-value UPI transactions faster, more secure, and seamless, Paytm Payments Bank Limited (PPBL) has introduced UPI LITE in India. PPBL is now the country's first payments bank to offer this feature powered by the National Payments Corporation of India (NPCI). To note, PPBL is the nation's biggest UPI beneficiary bank for 20 consecutive months.
Why does this story matter?
- As per data provided by the NPCI, over 50% of UPI transactions are below Rs. 200. Paytm took note of this trend to introduce UPI LITE.
- The company claims that this new facility will offer a distributed way of "authorizing low-value transactions, moving them away from core banking."
- If successful, digital adoption for payments in the nation will certainly go up.
How to use UPI LITE?
PPBL users have to first load money in their UPI LITE wallet. Up to Rs. 2,000 can be added twice a day, thus ensuring a usable sum of up to Rs. 4,000. Once loaded, users can do instant transactions of up to Rs. 200. Multiple small-value UPI payments can be done without worrying about the cap on the number of bank transactions.
Passbooks can be rid of minute transactions
UPI LITE, launched by the Reserve Bank of India in September 2022, can also de-clutter the bank passbooks. This is because all small-value transactions, show up in PPBL's balance section, instead of the bank document. Paytm claims that UPI LITE will improve the safety and success rate of transactions and also boost the adoption of mobile payments in the country.
'UPI LITE will drive digital inclusion'
"We are a leader in UPI as the largest beneficiary bank, acquiring bank, and leading remitter bank. We are excited to be the first to empower Indians with the power of UPI LITE," said MD and CEO of PPBL, Surinder Chawla. "We are focused on driving digital inclusion and the launch of UPI LITE is a big step ahead in that direction," he added.
PPBL is a top remitter for UPI payments
PPBL, with over 1,765.87 million transactions in January, is India's biggest UPI beneficiary bank. It is also among the top 10 remitter banks for UPI transactions, with 389.61 million transactions. When it comes to National Electronics Toll Collection (NETC) FASTag, Paytm boasts impressive figures. It processed 50.58 million transactions as an acquirer bank and 61.15 million transactions as an issuer in December 2022.
A brief history of Paytm Payments Bank
PPBL, headquartered in Noida, was founded in 2015 and received approval from RBI to run a payments bank the same year. It formally began operations in November 2017. Airtel Payments Bank and India Post Payments Bank are some of its rivals.
