UPI Lite is the solution that will allow payments based on the Unified Payments Interface to take place without any internet connectivity.
A framework was issued by the Reserve Bank of India earlier this month that allowed offline digital payments which will not need any internet connection or any telecom connectivity but will have a certain condition attached.
The user will be limited to Rs.200 per transaction with an overall limit of Rs.2000 for offline transactions, after which the user will have to replenish the balance by going online again.
The RBI said in a press release that, with this framework, the users can make offline payments face-to-face with the help of cards, digital wallets, and mobile devices. Moreover, the RBI said that the customers will also be provided with protection under the provisions of circulars limiting customer liability that will be amended from time to time.
The transactions will not need an Additional Factor of Authentication (AFA) like OTPs, but, since the transactions are offline, the customers will receive SMS and email alerts.
