For those using UPI Lite for small transactions, an exciting new feature is set to launch on October 31.
The National Payments Corporation of India (NPCI) announced on August 27 that users will soon have access to an “auto top-up” option.
This will allow them to automatically reload their UPI Lite balance with an amount of their choice, making small, PIN-less transactions even more seamless.
With this feature, the UPI Lite balance will be reloaded up to a maximum of ₹2,000, and users can enjoy transactions below ₹500 without entering a PIN.
It is important to note that the UPI Lite balance will not exceed ₹2,000 at any given time.
Additionally, users can cancel the auto top-up mandate whenever they wish.
How UPI Lite Works
UPI Lite is a payment solution designed for transactions under ₹500, offering a simpler, faster way to make small payments without needing to enter a PIN.
The transactions bypass the sender’s bank’s core banking system, helping keep the user’s passbook clutter-free.
How Will Auto Top-Up Work?
The NPCI has instructed banks to support the auto top-up function on UPI Lite.
Banks will allow users to create a UPI Lite mandate, facilitating debit requests through their payment service providers (PSP) or apps.
UPI apps will offer the necessary interface for users to access the auto top-up feature.
Each UPI Lite account will have a limit of five auto top-up transactions per day, ensuring the feature is both user-friendly and secure.
