RBI announces new UPI features: From higher transaction limit for UPI Lite to payments via conversations

The Reserve Bank of India (RBI) on Thursday announced three new features to enhance the digital payment experience in the country. In a bid to bring more convenience to users, the RBI proposed to increase the per transaction payment limit for UPI Lite in offline mode from Rs 200 to Rs 500. In addition, the central bank introduced Conversational Payments and Near Field Communication (NFC) technologies.

These developments by the RBI are expected to drive the growth of digital payments in India by providing users with more options, convenience, and accessibility while ensuring security and reliability.

RBI will increase the per transaction payment limit to Rs 500 for UPI Lite in offline mode. Presently, a limit of Rs 200 per transaction and an overall limit of Rs 2,000 per payment instrument has been prescribed by the Reserve Bank for small value digital payments in offline mode, including for National Common Mobility Card (NCMC) and UPI Lite.

According to Adelia Castelino, Co-Founder and Managing Director at In-Solutions Global, this is positive step towards accommodating a wider range of daily transactions and encouraging more users to adopt digital payments for their convenience.

In addition to the increase in transaction limits, the RBI has introduced two new technologies to further improve the digital payment ecosystem. The first technology, known as 'Conversational Payments,' enables users to engage in conversations with AI-powered systems to initiate and complete transactions. This feature aims to enhance the ease of use for users who may find navigating mobile applications challenging or time-consuming. Initially available in Hindi and English, this feature will eventually be expanded to include more Indian languages.

Mandar Agashe, the Founder and MD of Sarvatra Technologies, highlighted how the increase in transaction limits and the introduction of Conversational Payments will enhance the accessibility and convenience of UPI transactions, especially for those who may not be tech-savvy.

The second technology, Near Field Communication (NFC), is being introduced for offline payments through 'UPI-Lite' on-device wallet. This technology allows users to make payments even in areas with weak or no internet connectivity. By leveraging NFC technology, offline payments can be made securely and swiftly, addressing the limitations posed by internet availability.

Experts and industry leaders have praised these initiatives by the RBI.

Rahul Tandon, Chief Product Officer of Safexpay, emphasized that Conversational Payments will simplify the payment journey and open up opportunities for AI-driven engagement in the digital payment ecosystem. He also noted the significance of NFC technology for offline payments, ensuring seamless transactions even in areas with connectivity challenges.