What changed
The RBI circular dated December 4, 2024 amends the offline digital payment framework originally set in January 2022. For UPI Lite, the per-transaction limit has been doubled from ₹500 to ₹1,000, and the total limit per payment instrument at any point in time has been raised from ₹2,000 to ₹5,000.
What it means for you
Banks and payment system operators can now offer UPI Lite users higher transaction ceilings for offline payments, as per the RBI circular. This expands digital payment reach, but lenders must update system limits and ensure compliance with the revised caps.
What you must do
- Update UPI Lite system parameters to reflect new limits: ₹1,000 per transaction and ₹5,000 total per instrument.
- Communicate the enhanced limits to customers via app notifications, SMS, or in-branch messaging.
- Review risk management frameworks for offline transactions to account for higher exposure per instrument.
- Ensure compliance with Section 18 read with Section 10(2) of the Payment and Settlement Systems Act, 2007.
Who it affects
Banks offering UPI Lite services, Non-bank payment system operators, UPI Lite end-users, Merchants accepting offline digital payments
What are the new limits for UPI Lite offline transactions?
The per-transaction limit has been increased to ₹1,000, and the total limit per payment instrument at any point in time is now ₹5,000.
When do these changes take effect?
The circular is effective immediately from December 4, 2024.
Do these limits apply to all offline digital payments or only UPI Lite?
The circular specifically enhances limits for UPI Lite under the offline framework. Other offline payment instruments remain subject to the earlier limits unless separately amended.