UPI LITE
Agenda
A
Short Note on How does UPI
Lite function
UPI Lite- Pros & Cons
C
Draft BRD of UPI Lite with possible
errors and handling scenarios
Mention the role and
responsibilities of TSP and TPAP
in UPI Lite
B
D
UPI Lite-Overview
“UPI LITE” means the service provided to you by your Issuing Bank whereby low value transactions can be
carried out using an ‘on-device’ wallet; and is a Feature enabled on the BHIM App.
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All your Accounts linked to your UPI IDs may not be eligible for UPI LITE. You can enable UPI LITE for one Account only in the
App
The upper limit of a UPI LITE Transaction shall be Rs. 200/- and the total limit of UPI LITE Balance shall be Rs. 2000/- at any point
in time
UPI LITE Balance in the App is only a virtual ‘on-device’ balance and a reflection of UPI LITE Balance allocated by you in your
Account. No interest will be payable on the UPI LITE Balance.
The actual money/funds with respect to your UPI LITE Balance is held and maintained with your Issuing Bank;
UPI LITE Balance can be replenished by making a top up Transaction i.e. allocate / add more funds to UPI LITE from your
Account;
In the event your access to UPI LITE is disabled, the unutilized UPI LITE Balance will be credited to your Account by your Issuing
Bank.
Separate Authorisation or UPI PIN is not required for carrying out Transaction using UPI LITE.
UPI LITE Transactions other than top up Transaction will not be displayed in the statement (pass book) of your Account. You will
receive SMS once a day for UPI LITE Transactions from your Issuing Bank containing history of Transactions carried out during
the day;
Any disputes pertaining to enablement, top up or disablement of UPI LITE shall be referred to and handled by your Issuing
Bank;
UPI Lite- Pros & Cons
Business Need-
CONs
PROs
1. More than 50% of transactions through UPI are below the value of
₹200.
2. This introduction of UPI Lite within Paytm will increase the success
rate of transactions, thereby improving the overall user experience
Customer will not have
multiple debit entries for
each UPI Transaction
Banks earlier lost to wallets
due to inconvenience
caused compared to wallets
Separate Authorisation or
UPI PIN is not required for
carrying out Transaction
using UPI LITE.
The upper limit of a UPI
LITE Transaction is Rs.
200/- & the total limit of
UPI LITE Balance is Rs.
2000/- .
UPI LITE can be enabled
for one Account only in
the App
You will receive SMS once a
day for UPI LITE Transactions
from your Issuing Bank
containing history of
Transactions carried out
during the day;
Customer can use it without
internet connection
UPI Lite- How does it work
1.We have to activate UPI Lite service in our UPI App
2.As we activate this service, the UPI App creates an
on-device wallet. The app forms this wallet in our
mobile phone. But we can’t find it out as it is
encrypted.
3.We add money to the UPI Lite wallet.
4.As we add money to the wallet, the bank puts aside
that amount. Now we can’t use that amount for the
regular payment. We can use it only through the UPI
Lite Wallet.
5.Now you can see the balance in your Wallet.
6.You can make payment using this wallet. It does not
require the internet. The transaction entry is made on
your device only. This transaction information does
not immediately go to the bank. Thus, you can’t see
these transactions in your bank statement.
7.Your account would have only entries of wallet top
up.
8.The transaction history of the UPI lite can be seen
only in the UPI app. It would not reflect in your
passbook.
Pointers
1.Wallet at NPCI end against each of the bank accounts.
2.Debit leg doesn’t hit the bank. Instead, wallet is deducted.
3.Normal settlement cycles.
4.Wallet mapped to each bank account of user basis Payment app.
Separate wallet at NPCI for each individual and for each unique bank
account.
5.For P2P- NPCI debits one wallet and credits another
6.For P2M- Credit is done to merchant as there is no merchant UPI Lite
yet.
7.Payment failure reduced- As debit leg , there is no hit to actual bank
servers. Everything happens at NPCI so better success rate.
Business Requirement Document
User Story 1- Set-up/Enable UPI Lite
User StoryAs a User, I want to set-up UPI Lite on my payment app so that I can use UPI Lite Version as a UPI wallet
Acceptance Criteriaa) Must accept the T&C and system should capture customer consent to enable UPI Lite
b) Must add initial money in multiples of INR 500 to enable UPI Lite
c) Must be able to link account from one of the permitted banks [Canara Bank, Central Bank of India, HDFC Bank, Indian Bank, Kotak
Mahindra Bank, Punjab National Bank, State Bank of India, Union Bank of India, and Utkarsh Small Finance Bank.]
Negative Scenario:
a) Should not be able to add more than 2000
b) Should not be able to add any other bank except the above-mentioned permitted ones
User Story 2- Add Money to UPI Lite
User StoryAs a User, I want to add money to UPI Lite on my payment app so that I can pay directly from the UPI Lite wallet
Acceptance Criteriaa) Must be able to navigate to UPI Lite wallet on the payment app to UPI Lite “Add Money” Section
b) Must add money in multiples of INR 500 to enable UPI Lite
c) Added Money should reflect in the UPI Lite Wallet balance
d) Must have an internet connection to add Money
Negative Scenario:
a) Should not be able to add more than 2000
Business Requirement Document
User Story 3- Pay through UPI Lite
User Story- As a user, I want to pay through UPI Lite wallet so that money can be sent instantly to receiver
Acceptance Criteriaa) Must be able to choose a beneficiary wither by scan & pay or enter UPI ID of beneficary to send money
b) Must get option to select payment options including UPI or UPI Lite
c) Must be able to transfer a single transaction amount upto INR 200
d) Must be able to enter amount in numbers including decimals
e) Must not ask for PIN while making a payment
f) Must get option to check the status & transaction details of the payment
Negative Scenario:
a) Must deduct money from the UPI Lite wallet and not bank account.
User Story 4- Refund/Release Money back to account from UPI Lite Wallet
User Story- As a user, I want to move my UPI Lite wallet balance back to my linked account so that I can use that amount for
other purposes
Acceptance Criteriaa) Must be able to release entire amount or in multiple of INR 500.
Negative Scenario:
a) UPI Lite wallet account gets deducted but linked account does not get credited
Business Requirement Document
User Story 5- Auto-reminders to be sent to user for low UPI Lite wallet balance
User Story- As a user, I want to get auto-reminders for low UPI Lite wallet balance so that I can add money
Acceptance CriteriaMust get auto-reminder if UPI Lite wallet balance drops below INR200
Negative Scenario:
User Story 6- Close/Disable UPI Lite account
User Story- As a user, I want to Close/Disable UPI Lite account so that I do not have any UPI Lite wallet anymore
Acceptance CriteriaMust be able to close the account and the remaining balance should get credited to the linked bank account
Negative Scenario:
Should not be able to see the UPI Lite wallet account anymore
Business Requirement Document
User Story 7- Check UPI Lite wallet balance
User Story- As a user, I want to Check UPI Lite wallet balance so that I can know my wallet balance
Acceptance CriteriaMust display refresh UPI Lite wallet balance
Negative Scenario:
Should not display incorrect wallet balance
User Story 8- Check UPI Lite payment details
User Story- As a user, I want to Check UPI Lite payment details so that I can verify past transaction details
Acceptance Criteriaa) Must display UPI ID, Linked bank account number, Amount, Transaction ID, Remarks & payment status
b) Must show an option to repeat similar transaction to the same beneficiary
c) Must show option to raise alarm on the transaction in case of discrepancy
Negative Scenario:
Should not display incorrect transaction details
Mention the role and responsibilities of TSP and TPAP in UPI Lite
Payment Service Provider
1.PSP is banking company that is a member of UPI and connects to the UPI platform for providing UPI payment facility to the PSP and TPAP
which in turn enables the Users and merchants to complete payment transactions over UPI.
2.PSP either through its own app or TPAP’s app, on-boards and registers the User on UPI and links their Funding Accounts to their
respective UPI ID.
3.PSP is responsible for authentication of the User at the time of registration of such customer, either through its own app or TPAP’s app.
4.PSP engages and on-boards the TPAPs to make the TPAP’s UPI app available to the User.
5.PSP has to ensure that TPAP and its systems are adequately secured to function on UPI.
6.PSP is responsible to ensure that UPI compliant application and systems of TPAP are audited to safeguard security and integrity of the
data and information of the User including UPI Transaction Data as well as UPI app security.
7.PSP has to store all the payments data including UPI Transaction Data collected for the purpose of facilitating UPI transactions, only i n
India.
8.PSP is responsible to give all UPI customers an option to choose any bank account from the list of Customer’s Banks available on UPI
platform for linking with the customer’s UPI ID.
9.PSP is responsible to put in place a grievance redressal mechanism for resolving complaints and disputes raised by the User.
Mention the role and responsibilities of TSP and TPAP in UPI Lite
Technical Service Provider
1.TSP should ensure that all transactions routed to UPI/IMPS should comply with the message specifications, as specified by UPI /IMPS,
based on XML/ISO 8583 message formats
2.Each TSP will be provided with a report on the state of operations, including a description of the systems of internal contro l and any
deficiencies.
3.Each TSP should also proactively conduct annual internal audits of itself and its processing agents, if any, on a regular bas is to comply
with the UPI Procedural Guidelines
4.Each TSP participating in the UPI Network through its Sponsor PSP is expected to maintain round -the-clock connectivity of their
switch for the UPI services with an uptime of 99.9%
5.All TSPs participating in the UPI network through their Sponsor PSPs must comply with data integrity laws as applicable in In dia. They
must be compliant with the applicable security regulations as defined for UPI and/or guidelines as issued by RBI & NPCI from time to
time.In addition to it, any other regulations for data storage of payment details will also be adhered to.
6.Each PSP should submit periodic reports, statements, certificates, and other such documents as may be required by the NPCI fr om
time to time. Furthermore, the PSP should comply with such audit requirements as may be framed by NPCI for the purposes of th eir
audit.
Mention the role and responsibilities of TSP and TPAP in UPI Lite
Third-Party Application Provider
1.TPAP is a service provider to the PSP and participates in UPI through PSP.
2.TPAP is responsible to comply with all the requirements prescribed by PSP and NPCI in relation to TPAP’s participation in UPI .
3.TPAP is responsible to ensure that its systems are adequately secured to function on the UPI platform.
4.TPAP is responsible to comply with all the applicable laws, rules, regulations and guidelines etc. prescribed by any statutor y or
regulatory authority in relation to UPI and TPAP’s participation on the UPI platform including all circulars and guidelines i ssued
by NPCI in this regard.
5.TPAP has to store all the payments data including UPI Transaction Data collected by TPAP for the purpose of facilitating UPI
transactions, only in India.
6.TPAP is responsible to facilitate RBI, NPCI and other agencies nominated by RBI/ NPCI, to access the data, information, syste ms
of TPAP and carry out audits of TPAP, as and when required by RBI and NPCI.
7.TPAP shall facilitate the User with an option of to raise grievance through the TPAP’s UPI compliant app, e-mail, messaging
platform, IVR etc. for redressal of customer grievances.
How to become a TPAP ?
Mention the role and responsibilities of TSP and TPAP in UPI Lite
How to become a TPAP ?
Associated Cost
1.Contact bank and sign an agreement.
2.Pay integration fee.
3.Bank submits proposal/idea to NPCI.
4.Post clearance, bank shares UAT details
5.Develop app and integrate UAT SDK.
6.Get VPAT[Voluntary Product Accessibility Template] 3rd
party Audit from CERT-IN empanelled auditor.
7.Get DLSAR [System Audit Report]3rd party audit from CERTIN empanelled auditor.
8.Bank's internal tech team will perform sanity testing &
audit.
9.Resolve all audit issues and get clearance from Bank team
and 3rd party.
10.Submit UAT app to NPCI and get it cleared from NPCI.
11.Get pre-production access from bank.
12.Be in pre-production and sort out issues if any.
13.Get Go-LIVE permission from NPCI.
14.Get production SDK from bank & integrate the same in
your app.
15.Congrats! you are live
1. Upfront Integration Fee ~ ₹3 lakhs - ₹25 lakhs
2. Annual Maintenance Fee ~₹4 lakhs - ₹20 lakhs
3. Own Development Cost
4. Audit Cost
5. Insurance Cost
Competition
Nine banks currently support Paytm UPI LITE, including
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2.
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9.
Canara Bank,
Central Bank of India,
HDFC Bank,
Indian Bank,
Kotak Mahindra Bank,
Punjab National Bank,
State Bank of India,
Union Bank of India, and
Utkarsh Small Finance Bank.
UPI LITE- Sample Flow on BHIM App
UPI LITE- Sample Flow on BHIM App
UPI LITE- Sample Flow on BHIM App
UPI Lite Activation
1. UPI Lite Activation Request
6. UPI Lite Activation Response
2. UPI Lite Activation Request
3. UPI Lite Request
5. UPI Lite Activation Response
4. UPI Lite Response
Payer PSP
NPCI Auth Engine
UPI Lite Top-UP
1. UPI Lite Top-Up Request
3. UPI Lite Top-Up Request
2. UPI Lite Top-Up Request
10. UPI Lite Top-Up Response
9. UPI Lite Top-Up Response
6. UPI Lite Top-Up Response
Payer PSP
7. UPI Lite
Update
Request
8. UPI Lite
Update
Response
NPCI Auth Engine
4. Debit Request
Issuing UPI
Switch
5. Debit Response
Issuer
Bank
Payment using UPI Lite
2. UPI Lite Payment Request
1. UPI Lite Payment Request
10. UPI Lite Payment Response
Payer PSP
3. VPA
Resolution
Request
10. UPI Lite De-Register
Response
4. VPA
Resolution
Response
7. Credit Request
8. Credit Response
9. UPI Lite Payment Response
6. Lite
Debit
Response
De-Registering UPI Lite
1. UPI Lite De-Register
Request
Payee PSP
Beneficiary Bank
5. Lite Debit
Response
Debit Pool
a/c & credit
user a/c with
UPI Lite
Balance
NPCI Auth Engine
5. UPI Lite De-Register
Request
2. UPI Lite De-Register
Request
9. UPI Lite De-Register Response
8. UPI Lite De-Register
Response
Payer PSP
4. UPI Lite
Update
Response
3. UPI Lite
Update
Request
NPCI Auth Engine
6. Debit Request
Issuing UPI
Switch
5. Debit Response
Issuer
Bank
UPI Lite- Important Success Metrics
#Unique Customers
enabled UPI Lite
#Unique Customers
active on UPI Lite
#Unique Customers
disabled UPI Lite
Total Monthly
Transaction volume
through UPI Lite
#UCE
#UCA
#UCD
#TTMV
Feature Metrics
Monetization Metrics
Average Monthly
Transaction volume
through UPI Lite
Average Payment Success
Rate on UPI Lite
Average Payment Failure
Rate on UPI Lite
#AMTV
#APSR
#APFR
Customer Acquisition
Cost (CAC)
Average revenue per
User (ARPU)
#CAS
#ARPU