New UPI features: Auto top-up likely to roll out on Nov 1, transaction limits hiked

By Gargi Chaudhry | First Published Oct 31, 2024, 12:31 PM IST

UPI Lite users can expect two major enhancements: an auto top-up feature for seamless transactions and an increased transaction limit. The auto top-up will automatically replenish the UPI Lite balance from the linked bank account once it falls below a user-defined threshold, eliminating manual top-ups. The RBI has also proposed increasing the per-transaction limit and overall wallet balance.

With two major improvements planned to improve their digital payment experience, UPI Lite customers are in for a treat. The new UPI Lite auto top-up function may allow your balance to be automatically replenished on November 1, 2024, if it drops below a certain level. By doing away with manual top-ups, Unified Payments Interface (UPI) Lite ensures continuous digital transactions. The UPI Lite transaction limit was recently increased by the Reserve Bank of India (RBI). Let's examine how you will benefit from these two latest UPI Lite improvements.

UPI Lite auto-top up feature likely to roll out on Nov 1

With UPI Lite, users may conduct small-value transactions without requiring a UPI PIN. To continue making payments, UPI Lite customers must currently manually reload their wallet balance from their bank account. The National Payments Corporation of India (NPCI) hopes to simplify this procedure and do away with the necessity for manual reloading with the new auto-top-up capability.

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NPCI stated in a news release dated August 27, 2024, "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 top-up your UPI Lite account?

For instance, UPI Lite will soon allow you to establish a minimum balance of, say, Rs 50. Your connected bank account will automatically replenish your UPI Lite wallet with a predetermined amount if your balance falls below this limit. You must also determine the reload amount, which cannot be more than the Rs 2,000 total wallet limit. The UPI Lite account may be topped up up to five times in a single day.

UPI Lite limit hiked

Currently, UPI Lite users can make transactions up to Rs 500 per transaction. Additionally, a UPI Lite wallet can only hold a maximum amount of Rs 2,000. Users using UPI Lite wallets have been given a daily maximum spend limit of Rs 4,000. The Reserve Bank of India (RBI) has suggested raising UPI Lite's maximum transaction limit from Rs 500 to Rs 1,000 in order to promote the service's broader usage. The UPI Lite wallet limit has also been raised from Rs 2,000 to Rs 5,000.

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