Summary of this article
Regular UPI handles high-value payments directly from banks.
UPI Lite enables fast small transactions via device wallet.
UPI Credit Line provides short-term borrowing within UPI.
The Unified Payments Interface (UPI) has grown into a system that handles most daily transactions, and the volumes reflect that. As many as 20.47 billion payments valued around Rs 26.32 lakh crore were processed through the system in November 2025, according to the National Payments Corporation of India (NPCI).
Amid the expansion of this network, the NPCI has added two additional modes for making transactions, which are set to shape how people pay for small purchases, quick checkouts and meet their short term credit needs.
Regular UPI
UPI, regulated by NPCI, remains the default way to make payments for smartphone users. It links bank accounts directly and supports instant transfers across apps and merchants. Banks set their own limits, making it possible for users to pay everyone from the neighbourhood vendor to their landlord without needing to switch between payment methods.
The system has also expanded internationally, with more corridors allowing cross-border QR transactions. As of December 7, such transactions can be made in more than nine countries, with Cambodia being the latest addition. For daily use, UPI remains the most versatile payment method offered by NPCI because it supports higher values and works in most payment situations.
UPI Lite
Launched in 2022, UPI Lite makes everyday small-value transfers fast and convenient for users. It works as an on-device wallet wherein the user can load up to Rs 2,000 and pay up to Rs 500 in a single transaction. This reduces the authentication steps and decreases stress on bank servers during peak hours. The feature is also regulated by NPCI and is aimed at providing an instant payment experience sans any physical wallet.
Many people use UPI Lite for quick purchases at stalls, transit stations, and local shops, especially when network congestion slows regular transactions. While no recent formal adoption numbers have been released as such, its presence is visible in crowded markets and during festivals, where traffic surges. And since it works at all times when banking systems tend to slow down, it has become an easy choice for relatively smaller everyday expenses.
UPI Credit Line
UPI Credit Line adds a borrowing based function to the same network. The Reserve Bank of India (RBI) announced the framework in April 2023, and banks began to roll it out from September 2024. It links pre-sanctioned credit lines to UPI apps, letting people pay merchants using borrowed funds instead of their savings. Repayments work on the basis of a revolving credit facility, which gives users short-term liquidity for routine spending.
