UPI Lite, UPI Lite X & Regular UPI: Step-by-Step Guide to Set Up UPI Lite & Lite X
Disclaimer: This blog is generic in nature. The transaction limit and other features may change as per regulatory body’s directives. Ujjivan SFB does not take responsibility for the information mentioned herein.
October 06, 2025
India’s Unified Payments Interface (UPI) moves billions of transactions worth trillions of rupees every month, but the heart of that growth lies in everyday micro-payments—the ₹20 chai, the ₹80 auto fare, the ₹150 grocery run.
These tiny, high-frequency spends create heavy traffic on banking systems, slowing down real-time transfers. To keep UPI fast and dependable, the Reserve Bank of India (RBI) and the National Payments Corporation of India (NPCI) introduced UPI Lite and its NFC-enabled sibling UPI Lite X.
This blog explores how these two layers work alongside regular UPI, the updated transaction limits for each, and when to choose one over the other so your next tap or scan is effortless.
What Is UPI Lite?
Think of UPI Lite as a mini-wallet embedded in your UPI app. Instead of hitting your bank account for every chai or metro ticket, you preload a small balance and let payments happen directly from that wallet.
Key features and limits (as per the latest NPCI circulars):
Because these micro-transactions don’t constantly touch the core banking rails, failures due to bank server delays are dramatically reduced. For users, that means faster payments and fewer “transaction pending” messages; for banks, it means less system load and better reliability.
UPI Lite X: Tap-to-Pay, Even Offline
UPI Lite X takes the same idea a step further by allowing offline, contactless payments using NFC tap-to-pay. Once you enable Lite X inside your UPI app and preload funds, you can simply tap your phone on a compatible merchant terminal—no mobile data required.
Important limits and safeguards:
This makes Lite X ideal for situations where mobile connectivity is unreliable—think underground metro stations, crowded festivals, or long highway stretches. It combines the speed of a physical tap card with the convenience of UPI, giving small payments a true “wave-and-go” experience.
Regular UPI & Its Transaction Limits
Regular UPI is the backbone of India’s digital-payments network. Every transaction moves directly from one bank account to another in real time, supporting peer-to-peer (P2P) transfers, peer-to-merchant (P2M) payments, recurring mandates, and e-commerce checkouts. Because funds flow straight through the banking system, a UPI PIN is mandatory for every debit, ensuring strong, two-factor authentication.
1. Standard Limits
For most users, the cap remains ₹1 lakh per transaction, with banks permitting higher for specific merchant payments such as e-commerce orders or utility bills. These limits cover the vast majority of everyday UPI activity.
Enhanced Limits for Verified Merchant Categories (Effective 15 September 2025)
To support larger, specialized transactions, RBI and NPCI have approved higher ceilings for select verified merchants:
These enhanced thresholds are designed for high-value merchant payments and do not apply to ordinary P2P transfers, where the regular ₹1 lakh limit still holds.
Now, let’s check the enhanced limits category-wise.
| Category | Enhanced Limits (per transaction) (₹) | New Cumulative Limits (24 hours) (in ₹) |
| Investments (Capital Markets) | 5 lakh | 10 lakh |
| Insurance | 2 lakh | 2 lakh |
| Government e-Market Place | 5 lakh | 5 lakh |
| Travel | 2 lakh | 2 lakh |
| Credit Card Payments | 5 lakh | 5 lakh |
| Jewellery | 2 lakh | 2 lakh |
| Business/Merchant | 5 lakh | - |
| FX Retail via BBPS | 5 lakh | 5 lakh |
| Digital Account Opening for Term Deposits | 5 lakh | 5 lakh |
| Initial Funding for Digital Account Opening | 2 lakh | 2 lakh |
Note*-Bank specific Internal transaction limits may be applicable for certain MCCs
UPI Lite vs UPI vs UPI Lite X: Key Differences
| Feature | UPI Lite | UPI Lite X (Offline) | Regular UPI |
| Purpose | Fast, small-value daily payments | Tap-to-pay where no internet | All transactions, small to very large |
| Per-Transaction Limit | ₹1,000 | ₹500 (offline mode) | ₹1 lakh; special merchants payment limits vary |
| Daily Usage Cap | ₹10,000 | Per day 4000, max wallet balance 2000 | Typically ₹1 lakh; special categories up to ₹10 lakh/24 hrs |
| Wallet/Balance | Preloaded up to ₹5,000 | Sub-wallet within Lite | Direct from bank account |
| PIN Requirement | None per transaction | None per transaction | PIN required for every debit |
| Offline Capability | No | Yes, via NFC | No |
How to Set Up and Enable UPI Lite & UPI Lite X
Enabling UPI Lite or Lite X is quick and works across major UPI apps. Follow the steps below according to the service you want to activate.
A. Setting Up UPI Lite (Online Wallet)
1. Update Your App
Make sure your UPI app is on the latest version to access the Lite option
2. Open UPI Lite Settings
Go to Settings or the UPI Lite section in your app’s payment settings
3. Select Your Bank Account
Choose the bank account you want to link for Lite transactions
4. Add Wallet Balance
Top up an amount of your choice—up to ₹5,000 at a time—within the ₹10,000 daily usage limit
5. Authenticate Once
Enter your regular UPI PIN for this one-time wallet load. After this, no PIN is needed per transaction for payments up to ₹1,000
You can now pay instantly for small purchases like tea, groceries, or metro tickets without entering a PIN each time.
B. Setting Up UPI Lite X (Offline Tap-to-Pay)
1. Complete UPI Lite Setup
First enable UPI Lite as described above; Lite X uses the same wallet
2. Turn On NFC
Check that your phone supports Near-Field Communication (NFC) and toggle it on in device settings
3. Enable Lite X in the App
In your UPI app, find UPI Lite X or Tap & Pay and switch it on
4. Grant Security Permissions
Allow device-level protection (screen lock or biometric) for added safety
5. Tap to Pay
Hold your phone near any compatible merchant terminal to pay offline
Security Tip:
If your phone is lost or stolen, immediately lock your UPI app or block the device. The offline exposure is limited to the ₹2,000 sub-wallet, protecting the rest of your funds.
Benefits of UPI Lite & Lite X
UPI Lite isn’t just a convenience feature; it solves real infrastructure challenges:
For banks, these features lower core-system congestion and reduce costs associated with failed transactions—making the entire UPI network more reliable.
Limitations UPI Lite & Lite X & When to Use Regular UPI
Use regular UPI for anything beyond these limits—rent, tuition, e-commerce orders, or any transaction needing a direct, traceable debit with mandatory UPI PIN entry.
Final Thoughts
UPI Lite and Lite X show how India’s digital-payments ecosystem keeps evolving for everyday needs. By shifting billions of micro-transactions off the main banking rails and even allowing offline NFC tap-to-pay, they make small payments faster and more reliable while letting banks focus on high-value transfers.
Still, regular UPI remains the backbone for larger amounts and recurring mandates. Together, these three options create a seamless payment stack where a ₹20 tea and a ₹5-lakh investment travel with the same ease and reliability—proof that India’s payment innovation thrives not only in scale, but in everyday simplicity.
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