New Delhi: UPI Lite is set to receive new features, adding to the ease of payments for people who prefer digital payment s. Nowadays, digital payments are becoming increasingly popular. People carry less cash and use their phones more to make online payments. Digital payments have removed the hassle of carrying and paying by cash and enable seamless transactions of money from one bank account to another. When it comes to digital payments, UPI is one of the most popular modes in the country.
Those who use UPI Lite will experience two significant updates which will make their digital payment experience smoother. From November 1, the balance in the UPI Lite could be reloaded automatically if it goes down below a certain limit. This will be made possible by the new auto top-up feature in UPI Lite. Notably, the RBI recently increased UPI Lite’s transaction limit.
What is UPI Lite?
UPI Lite is a payment mode that uses the NPCI Common Library (CL) application and processes low-value transactions set at below Rs 500. It operates off the existing UPI ecosystem protocols for mobile phones to ensure commonality, compliance and system acceptance. It aims to facilitate a customer-friendly approach to enabling low-value transactions.
What are the benefits of new UPI Lite features?
With the help of UPI Lite, one can make transactions of small value without using a UPI PIN. At present, the users of UPI Lite have to reload their wallet balance manually from their bank account to make payments. But, thanks to the new auto-top-up feature, this process will be streamlined by the National Payments Corporation of India (NPCI) and it will remove the need to reload manually. The NPCI said in a press release from August 27 that the new feature will automatically reload the balance and the user will choose the amount. The amount should not cross the balance limit of UPI Lite, whenever the balance falls below the minimum limit.
How will the balance be auto-reloaded?
One can set Rs 50 as the minimum balance on UPI Lite. Whenever the balance goes below the minimum limit, the UPI Lite wallet will be automatically reloaded with a fixed amount from the bank account of the user which is linked with the payment app. It is the user who has to set the reload amount and it cannot be more than the overall wallet limit, which is Rs 2,000. In a day, a maximum of five top-ups will be allowed on the UPI Lite account. The NPCI has stated that the user of UPI Lite will have to enable the feature by October 31. So, most probably, one would be able to use the auto top-up feature from November 1 on UPI Lite.
Enhanced UPI Lite transaction cap
At present, the users of UPI Lite can transact a maximum of Rs 500 each time they make a payment and the maximum balance in the UPI Lite wallet is Rs 2,000. The cumulative maximum daily spend limit is Rs 4,000 for UPI Lite wallet users. According to reports, the RBI has proposed to increase the maximum transaction limit of UPI Lite from Rs 500 to Rs 1,000. Also, it has increased the limit of the UPI Lite wallet from Rs 2,000 to Rs 5,000.
