Federal Bank Introduces UPI Lite for Small-Value Digital Payments

Current Context: Federal Bank has introduced UPI Lite, a new payment solution that allows users to make small-value digital payments without using a UPI PIN.

• UPI Lite is a simplified version of the Unified Payments Interface (UPI) system that leverages the NPCI Common Library (CL) application to process low value transactions that have been set at below Rs. 500.
• The solution runs off existing UPI ecosystem protocols for mobile phones to ensure commonality, compliance and system acceptance.
• UPI Lite enables users to store money in their UPI Lite on-device wallet and make offline payments to merchants without using a UPI PIN.
• The upper limit of an UPI Lite payment transaction is Rs. 200 and the total limit of UPI Lite balance for an on-device wallet is Rs. 2,000 at any point of time.
• Users can replenish funds in UPI Lite only in online mode with additional factor authentication (AFA) or using UPI AutoPay which has been registered by the user in online mode with AFA.

Question:

Q.1 What is the purpose of the UPI Lite introduced by Federal Bank?
a. To facilitate large-value digital transactions
b. To facilitate small-value digital transactions
c. To facilitate international transactions
d. To facilitate cryptocurrency transactions