Which one of the following statements is correct? |ForumIAS

[A] UPI123 targets smartphone users, while UPI Lite targets feature phone users

[B] UPI123 targets feature phone users, while UPI Lite targets smartphone users

[C] UPI123 uses an on-device wallet, while UPI Lite directly accesses bank accounts

[D] UPI Lite has higher transaction limits than UPI123

Answer: B

Notes:

Explanation –

UPI123is designed specifically for feature phone users. It allows them to access UPI services without needing a smartphone or internet connection. Transactions can be performed using methods such as phone calls, interactive voice response (IVR), missed calls, and sound-based technology. This system was created to broaden digital payment accessibility for users who do not have smartphones. The transaction limit for UPI123 was initially set at ₹5,000 per transaction and has been increased to ₹10,000.
UPI Litetargets smartphone users and functions as an on-device wallet for making small-value transactions. While it does not require internet connectivity for transactions themselves, users need internet access to load money into the wallet from their bank accounts. Initially, UPI Lite allowed transactions up to ₹500, which has been increased to ₹1,000 per transaction. The overall wallet limit has also been raised from ₹2,000 to ₹5,000. This service is aimed at simplifying and speeding up minor transactions without using the core banking system in real-time.

Source: The Hindu