Federal Bank Introduces UPI Lite for Effortless Small-Value Digital Payments

by Prashant Kapadia/NHN                                                                                                                                       

15^th November 2023, Mumbai: Federal Bank, a pioneer in banking innovation, launches UPI Lite, that will power small-value digital transactions in India. NPCI introduced UPI Lite—a simplified version of the Unified Payments Interface (UPI) system to cater to the growing demand for faster and more efficient small-value payments.

Benefits of UPI Lite for Customers include reduction in transaction time, a ready to access bank statement, higher payment success rate and enhanced security. UPI lite account can be created within the existing UPI app without downloading a new app.

Shalini Warrier, Executive Director, Federal Bank said, “UPI has been at the centre of India’s digital revolution and the addition of UPI Lite to this ecosystem provides customers a faster, more efficient and cost-effective alternative to cash transactions. We at Federal Bank are proud to be at the forefront of implementing UPI Lite and provide customers with greater digital convenience.”

UPI Lite is an ‘on-device wallet’ feature integrated into existing UPI apps. It enables users to make real-time small-value payments without the need for a UPI PIN. By facilitating direct transactions between the user’s mobile device and NPCI, UPI Lite alleviates stress on the core banking system.

Activating UPI Lite is seamless. Users can enable the UPI Lite feature in their existing UPI app that supports Lite functionality. The process involves logging in, accepting terms and conditions, specifying the amount, selecting the linked bank account, and confirming the request with their UPI PIN.

Transaction Limits in UPI Lite:

• Per Transaction Limit: Up to ₹500

• Maximum Cumulative Usage per Day: ₹4,000

• Maximum Balance in UPI LITE Account: ₹2,000

With its simplified interface, compatibility, and robust security measures, UPI Lite is set to enhance the digital payment experience. Customers can create Lite accounts using the UPI Lite feature in the BHIM, PhonePE, Google Pay and Paytm linked to their Federal Bank accounts.

Federal Bank (NSE: FEDERALBNK) is a leading Indian private sector bank with a network of around 1408 banking outlets and 1,935 ATMs/Recyclers spread across the country and the Bank’s total business mix (deposits + advances) stood at ₹ 4.26 Lakh Crore as on 30th September 2023. Capital Adequacy Ratio (CRAR) of the Bank, computed as per Basel III guidelines, stood at 15.50 % as on 30th September 2023. Federal Bank has Representative Offices in Dubai and Abu Dhabi that serve as a nerve center for Non-Resident Indian customers in the UAE. The Bank also has an IFSC Banking Unit (IBU) in Gujarat International Finance Tec-City (GIFT City). Federal Bank is transforming itself, keeping its principles intact, into an organization that offers services beyond par. It has a well-defined vision for the future as a guidepost to its progress.