Which of the following about India's Unified Payments Interface (UPI) LITE is correct?

Explanation

UPI Lite is built for the same problem that RBI's offline small-value payment framework addresses: quick, low-ticket digital payments where constant connectivity should not be the bottleneck. The RBI framework defines an offline payment as one that does not require internet or telecom connectivity to take effect, and UPI Lite follows that mechanism: each payment need not trigger a real-time bank debit. That reduces transaction load on banks and helps payments work in weak-connectivity areas. RBI's updated framework also supports the stated limit by specifying enhanced UPI Lite limits of Rs 1,000 per transaction and Rs 5,000 as the total limit.

Why the other options are wrong

• (A) UPI Lite is not designed to require internet for every transaction; the RBI framework covers offline payments that do not need internet or telecom connectivity to take effect.
• (C) The feature described is for small-value offline domestic payments, not a channel reserved only for international payments.
• (D) UPI Lite handles a limited small-value use case and complements regular UPI; it does not replace regular UPI completely.

Concept

This tests digital payment infrastructure under Science and Technology, especially how payment systems are adapted for inclusion and low-connectivity conditions. RAS repeats such topics because RBI-regulated fintech changes connect technology, governance and everyday service delivery.

Source

• Reserve Bank of India - Framework for Facilitating Small Value Digital Payments in Offline Mode

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