Troubled Paytm shifts focus on UPI Lite wallet after RBI's action on Paytm Payments Bank

Troubled fintech giant Paytm recently announced a strategic shift to enhance its UPI Lite wallet, which aims to simplify low-value, everyday transactions.

This specialized wallet allows users to carry out transactions of up to Rs 500 without the need for a PIN, making it an ideal tool for small payments like groceries, parking fees, and daily commutes.

Unlike traditional methods, UPI Lite consolidates multiple transactions into a single bank statement entry, helping users maintain a clean financial record.

UPI Lite to improve the payment process

Paytm's UPI Lite is designed to handle fail-proof transactions swiftly and securely, accommodating up to Rs 2,000 per addition with a total limit of Rs 4,000 daily.

Paytm said users can benefit from this feature by easily adding funds and making payments through a simple scan or tap, enhancing their experience with fast and convenient transactions at local vendors and for regular purchases.

It's worth mentioning that this wallet is distinct from Paytm's in-house operations and is part of a broader digital payment ecosystem supported by major banks like HDFC, SBI, and Axis Bank.

What led to the focus on UPI Lite?

The shift towards UPI Lite comes after the Reserve Bank of India imposed restrictions on Paytm Payments Bank, prohibiting it from accepting new credits into mobile wallets from March 15.

These limitations catalyzed Paytm to prioritize their UPI Lite feature, which operates independently from the conventional wallet services affected by the RBI's sanctions. 

How can users set up and use UPI Lite on Paytm?

To set up UPI Lite on the Paytm app, users will need to activate the feature by selecting 'UPI Lite Activate' on the home screen, choosing their bank account, and entering the amount they wish to load into their UPI Lite wallet. After validation with an MPIN, the wallet is ready for use.

For making payments, users can simply scan any UPI QR code, select a mobile number, or pick a contact, facilitating one-tap payments without further authentication.