The Reserve Bank of India (RBI) has announced a significant update for UPI Lite users. Starting June 7, 2024, the balance in UPI Lite wallets will be automatically replenished from users’ bank accounts when it falls below a certain limit.
This change eliminates the need for manual transfers each time the balance runs low. RBI Governor Shaktikanta Das highlighted this integration with the e-mandate framework as a step towards simplifying digital payments.
Changes in UPI Lite Services
Currently, UPI Lite allows users to load up to ₹2,000 into their wallets and make payments of up to ₹500. With the new update, an auto-replenishment feature will be introduced.
When the wallet balance drops below a set limit, funds will automatically transfer from the user’s bank account without requiring additional verification or pre-debit notifications.
This seamless process aims to enhance the convenience and efficiency of using UPI Lite for small transactions.
Enhancing Digital Payment Ease
RBI’s decision to integrate UPI Lite with the e-mandate framework is driven by the goal of improving the user experience for small-value transactions.
By automating the balance top-up process, RBI intends to make digital payments more hassle-free and accessible for everyday use.
This move is expected to significantly enhance the appeal and utility of UPI Lite for consumers across the country.
