UPI Lite auto-top-up feature likely to be rolled out from November 1, 2024
UPI Lite is a wallet that allows users to make small-value transactions without using a UPI PIN. Currently, UPI Lite users have to manually reload their wallet balance from their bank account to continue making payments. However, with the new auto-top-up feature, the National Payments Corporation of India (NPCI) aims to streamline this process, eliminating the need for manual reloading.
In a press release dated August 27, 2024, NPCI said, “With this new feature, the UPI Lite balance will automatically be reloaded by an amount chosen by the user, not exceeding UPI Lite balance limit, whenever the balance falls below a minimum limit set by them.”
How to auto to-up your UPI Lite wallet balance
For example, you can soon set a minimum balance on UPI Lite, say Rs 50. Whenever your balance drops below this threshold, your UPI Lite wallet will be automatically reloaded with a fixed amount from your linked bank account.
The reload amount also needs to be set by you and it cannot exceed the overall wallet limit i.e. Rs 2,000. Up to five top-ups will be allowed on the UPI Lite account in a day.
Deepak Chand Thakur, Co-founder and CEO of NPST Ltd says, “The timely introduction of UPI Lite auto top-up is a significant stride in the evolution of digital payments. Perfectly aligned with UPI’s convenience-focused ethos, this feature simplifies small-ticket payments by eliminating the need for constant balance monitoring. Users can set one-time auto-fill instructions to automatically replenish their UPI wallet balances when it dips below a specified threshold, thus minimising wallet dormancy.””This added convenience is poised to further drive the adoption of UPI, expanding its user base and contributing to the broader expansion of the digital payments ecosystem,” he further adds.The NPCI also directed, “Members who are live on UPI Lite are requested to hereby note the changes and enable the feature by 31st October 2024.” So, it is likely that you will be able to use an auto top-up feature on UPI Lite from November 1, 2024. NPST has confirmed that they are going to roll out the new auto top-up feature withing the October 31 deadline.
UPI Lite limit hiked: All you need to know
Currently, UPI Lite users can make transactions up to Rs 500 per transaction. Additionally, the maximum balance that can be held in a UPI Lite wallet is capped at Rs 2,000. The cumulative maximum daily spend limit has been set at Rs 4,000 for UPI Lite wallet users.
To encourage wider adoption of UPI Lite, the Reserve Bank of India (RBI) has proposed to increase the maximum transaction limit of UPI Lite from Rs 500 to Rs 1,000. Additionally, it has also increased the UPI Lite wallet limit from Rs 2,000 to Rs 5,000.
Yashwant Lodha, Cofounder, PayNearby says,”India’s digital payments landscape has seen remarkable growth, yet a significant portion of the population remains underserved due to a lack of familiarity with technology. To truly drive financial inclusion, it’s essential to make digital payments more accessible through continuous innovation. The increase in the per-transaction limit for UPI Lite wallet limit to Rs 5,000 with a Rs 1,000 per transaction limit, are critical steps by the regulator in this direction. These changes will help broaden access, encourage greater adoption, and ultimately fuel consumption, contributing to the overall growth of the Indian economy.”
Keep in mind that UPI apps are yet to roll out the increased limit for UPI Lite.
