UPI Lite new rules: The auto top-up feature allows users to set a pre-determined balance threshold, below which the account is automatically reloaded with a user-selected amount.

Starting November 1, 2024, managing your UPI Lite balance will get easier with a new auto top-up feature. This upgrade, introduced by the National Payments Corporation of India (NPCI), will automatically reload your UPI Lite account whenever the balance drops below a specified threshold, ensuring a seamless payment experience.

Additionally, the Reserve Bank of India (RBI) has hiked the transaction limit of the UPI Lite. This is expected to roll out soon.

How UPI Lite auto top-up works

The auto top-up feature allows users to set a pre-determined balance threshold, below which the account is automatically reloaded with a user-selected amount.

This will support quick, PIN-less payments below ₹500.

Here’s how it works:

• The UPI Lite account will top up automatically when it falls below the chosen minimum balance.


• Users can set up an auto top-up mandate within their UPI app, authorizing it to deduct funds from their bank account and reload their UPI Lite balance as needed.


• Users retain control, with the option to cancel the mandate at any time. Additionally, auto top-ups are capped at five transactions per day, allowing for controlled usage. Designed to streamline small payments, UPI Lite eliminates the need for PIN verification for transactions under ₹500. Users simply open their UPI app and complete payments, without engaging the bank’s core systems.


 

This feature is particularly useful for fast, low-value transactions, making it ideal for everyday purchases.

Increased limits for UPI Lite

To promote wider adoption, the RBI has recently announced increased UPI Lite limits:

The limit per UPI Lite transaction is set to rise from ₹500 to ₹1,000. The maximum balance in a UPI Lite wallet will increase from ₹2,000 to ₹5,000.