UPI Transaction Limit Increased: UPI Lite Users Can Now Transfer Up to ₹1000 in One Go, Auto Top-Up Introduced

UPI Lite Transaction Limit Doubled

The National Payments Corporation of India (NPCI) has increased the transaction limit for UPI Lite users. Customers can now make transactions up to ₹1000 in a single transaction, compared to the previous limit of ₹500. Additionally, the wallet balance limit has been raised from ₹2000 to ₹5000. According to an NPCI circular, these changes are effective immediately.

This decision aligns with the Reserve Bank of India’s (RBI) push to enhance digital payments and facilitate seamless small-value transactions. NPCI has directed all banks to implement these changes without delay.

To improve user convenience, UPI Lite Wallet balances will now be automatically transferred to linked bank accounts. This update, effective by March 31, 2025, ensures that unused wallet funds do not remain stuck. Previously, UPI Lite users could only add money to their wallets but could not withdraw it.

NPCI has also launched the auto top-up feature, ensuring that when wallet balances run low, funds are automatically added from the user’s bank account. Customers need to activate this feature manually by following these steps:

Users can set an auto top-up limit of up to ₹5000 in their UPI Lite wallets.

As per the new NPCI circular, UPI Lite transactions below ₹500 will not require a PIN. Additionally, banks have been instructed to identify inactive UPI Lite accounts—those with no transactions for the last six months—and return their balances to the linked bank accounts.

• UPI Lite transaction limit increased to ₹1000 per transaction.

• Wallet balance limit raised from ₹2000 to ₹5000.

• Auto top-up feature now available.

• Unused wallet funds will be sent back to bank accounts.

• No PIN required for transactions below ₹500.

With these updates, UPI Lite aims to offer a more efficient and seamless digital payment experience for users.