Synopsis:
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Auto top-up for UPI Lite will be available from October 31, 2024, allowing users to reload their balance automatically.
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UPI Lite lets users keep a maximum balance of ₹2,000 for small, PIN-less transactions.
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The feature is designed for quick payments under ₹500, making everyday transactions easier.
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Users can cancel the auto top-up option whenever they want.
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Users can perform up to five auto top-ups per day on their UPI Lite account.
Source: NPCI
In a recent development, the National Payments Corporation of India (NPCI) has announced that UPI Lite users will soon be able to enjoy an auto top-up feature for small-value transactions. Starting October 31, 2024, users can automatically reload their UPI Lite balance with an amount of their choice, according to a circular issued on August 27.
| The auto top-up feature allows users to automatically reload a set amount of money into their account or wallet when the balance drops below a certain threshold. This feature eliminates the need for manual reloading, ensuring that users always have sufficient funds available for transactions. |
This new feature is designed to make PIN-less transactions under ₹500 more seamless, with a maximum UPI Lite balance limit of ₹2,000. Importantly, users won’t be able to exceed this balance limit even with the auto top-up feature. The circular also highlights that users can also cancel the auto top-up anytime.
How to Set Up UPI Lite Account on Paytm?
Key directives from the NPCI include:
- Banks must support auto top-up and allow users to create mandates for easy reloading.
- UPI apps will update their features to let customers manage the auto top-up option.
- Banks must ensure that mandates are completed successfully with proper checks.
- Users can make up to five auto top-ups per day.
NPCI is positioning UPI Lite as a user-friendly solution for low-value transactions, offering convenience without burdening core banking systems in real-time while maintaining strong risk mitigation protocols.
What Is the Difference Between UPI Lite and UPI?
What is UPI Lite?
UPI Lite is a simplified version of the Unified Payments Interface (UPI) designed for small-value transactions. It allows users to make quick, PIN-less payments for amounts typically under ₹500 without using their main bank account directly. Instead, UPI Lite works by maintaining a wallet-like balance, with a maximum limit of ₹2,000 at any given time.
The primary goal of UPI Lite is to reduce the load on core banking systems by handling low-value payments efficiently, offering faster transaction processing and a more user-friendly experience for everyday payments. It is ideal for microtransactions such as buying groceries, paying for transportation, or small retail purchases.
Get more details on UPI Lite here!
