On Wednesday, Paytm Payments Bank Limited (PPBL) said it had enabled UPI LITE, a feature enabled by the National Payments Corporation of India (NPCI) for several small UPI transactions.

It will be one click through Paytm for faster real-time transactions. Through UPI LITE, the bank aims to drive the adoption of digital payments nationwide.

Once loaded, the UPI LITE wallet allows users to seamlessly make instant transactions of up to Rs 200.

UPI LITE can be added up to two times a day for Rs 2,000, increasing the cumulative daily usage to Rs 4,000.

In addition, the company said that through UPI LITE, users could make many small UPI payments without worrying about the cap on the number of bank transactions.

“According to official NPCI data, half of the daily UPI transactions in the country are below Rs 200. With UPI LITE, users can get a superior experience of faster and safer real-time micropayments. We focus on driving digital inclusion, and the launch of UPI LITE is a big step in that direction,” said Surinder Chawla, MD and CEO of Paytm Payments Bank.

RBI launched UPI LITE in September 2022. It also tidies up the bankbook for small transactions, as these payments will now only show up in the Paytm balance and history section and not in the bankbook.

“This will further increase the success rate of transactions, enhance user experience, and bring us closer to processing 1 billion transactions per day on the UPI platform,” said Praveena Rai, COO of NPCI.

Paytm Payments Bank recently announced that users could use the Paytm app to receive and send money instantly across platforms using any mobile number with a registered UPI ID.

PPBL remains the largest UPI beneficiary bank for the 19th consecutive month, with over 1,726.94 million transactions in December 2022, ahead of all major banks in the country.

With 386.5 million registered transactions, the bank is among the top 10 remittance banks for UPI transactions, according to the latest NPCI report.