New Delhi: UPI Lite users can look forward to significant enhancements as the platform implements two crucial updates starting November 1, 2024. These changes, driven by the Reserve Bank of India’s (RBI) latest decisions, aim to improve the payment experience for users across popular platforms like Google Pay, PhonePe, and Paytm.
Increased Transaction Limits
The first major update is an increase in the transaction limit for UPI Lite. Currently, users can make transactions of up to Rs.500 with a maximum wallet balance of Rs.2,000 and a daily spending limit of Rs.4,000. Under the new guidelines, RBI plans to raise the maximum transaction limit to Rs.1,000 and the wallet balance limit to Rs.5,000. This enhancement will enable users to make more substantial payments seamlessly.
Introducing Auto Top-Up Feature
The second update is the introduction of an auto top-up feature, which will also take effect on November 1. This new functionality automatically adds funds to a user’s UPI Lite balance if it falls below a predetermined threshold, eliminating the need for manual recharges. With this feature, UPI Lite users can enjoy uninterrupted payment capabilities without the hassle of constantly checking their balance.
Background on UPI Lite Updates
The auto top-up feature is part of the National Payments Corporation of India’s (NPCI) ongoing efforts to streamline the UPI Lite experience. Previously, UPI Lite required users to recharge their wallets manually from their bank accounts. The introduction of this feature aims to simplify the process and encourage more users to leverage UPI Lite for their small transaction needs.
Recent RBI data highlights a decline in debit card-based transactions, down 8% in September, as UPI payments continue to surge in popularity. With these upcoming changes, UPI Lite is poised to further enhance its appeal and utility for everyday transactions.
As UPI Lite evolves with these new features, users can anticipate a smoother and more efficient payment experience starting November 1, 2024.
