RBI Introduces New Feature In UPI Lite- Check How It Works

The Reserve Bank of India (RBI) has recently announced the integration of UPI Lite with the e-mandate framework. Thus, helping in the auto replenishment of UPI lite balance, said RBI Governor Shaktikanta Das.

This feature aims to improve the ease of conducting small-value digital transactions.

While, addressing the MPC meeting, RBI Governor said, ‘The UPI Lite facility currently allows a customer to load his UPI Lite wallet upto ₹2000 and make payments up to ₹500 from the wallet. In order to enable the customers to use the UPI Lite seamlessly, and brd on the feedback received from various stakeholders, it is proposed to bring UPI Lite within the ambit of the e-mandate framework by introducing an auto-replenishment facility for loading the UPI Lite wallet by the customer, if the balance goes below a threshold amount set by him/her. Since the funds remain with the customer (funds move from his/her account to wallet), the requirement of additional authentication or pre-debit notification is proposed to be dispensed with’.

Later, he further added, that in order to encourage the wider use of UPI Lite, it aims to bring this feature under e-mandate framework, where customers can top up their UPI Lite wallets automatically if the balance falls beneath the threshold limit set by them.

Thus, enhancing the ‘ease of making small value digital payments’.

Brief On UPI Lite

UPI-Lite refers to an on-device wallet service launched in September 2022, which facilitates quick and seamless small-value payments up to ₹200 through the BHIM app.