In a significant move to promote small-value digital payments, the Reserve Bank of India (RBI) has revised the framework for facilitating offline payments under UPI Lite. Through Notification no. RBI/2024-25/93, dated December 4, 2024, the RBI has announced an increase in transaction limits, making digital payments even more accessible for users.
Key Highlights of the Notification
- Transaction Limit Raised: The per-transaction limit for offline UPI Lite payments has been doubled to ₹1,000, up from the previous limit of ₹500.
- Enhanced Overall Limit: The total holding limit for a payment instrument under UPI Lite has been raised to ₹5,000, replacing the earlier cap of ₹2,000.
- Effective Date: The revised framework is effective immediately, ensuring users can benefit from the enhanced limits without delay.
Official copy of the notification has been mentioned below
RBI/2024-25/93
CO.DPSS.POLC.No.S908/02-14-003/2024-25
December 04, 2024
The Chairman / Managing Director / Chief Executive Officer
Authorised Payment System Operators and Participants (Banks and Non-banks)
Madam / Dear Sir,
Amendment to Framework for Facilitating Small Value Digital Payments in Offline Mode
This has reference to the RBI circular CO.DPSS.POLC.No.S1264/02-14-003/2021-2022 dated January 03, 2022 (updated as on August 24, 2023) which enabled small value digital payments in offline mode (Offline Framework). The framework, inter-alia, prescribes an upper limit of ₹500 for offline digital payment transaction, and a total limit of ₹2,000 for a payment instrument at any point in time.
2. A reference is also invited to the Statement on Developmental and Regulatory Policies dated October 09, 2024, wherein it was announced that the stated limits shall be enhanced for UPI Lite. Accordingly, the Offline framework has been updated and the enhanced limits for UPI Lite shall be ₹1,000 per transaction, with ₹5,000 being the total limit at any point in time.
3. This circular is issued under Section 18 read with Section 10 (2) of the Payment and Settlement Systems Act, 2007 (Act 51 of 2007), and shall come into effect immediately.
Yours faithfully,
(Gunveer Singh)
Chief General Manager-in-Charge
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