To enhance the digital payment experience, the National Payments Corporation of India (NPCI) has introduced exciting updates to UPI Lite, including an auto top-up feature and revised transaction limits.
Auto Top-Up Feature
With the auto top-up feature, users can now set a predefined recharge amount to automatically refill their UPI Lite wallet when the balance falls below a specified threshold. This ensures seamless, low-value transactions without interruptions. Users can limit recharges to five times a day.
Key Benefits of UPI Lite
- PIN-less transactions up to ₹1,500
- Maximum UPI Lite balance limit of ₹12,000
- Enhanced user experience with automatic fund transfers from bank to UPI Lite wallet
Revised Transaction Limits
The new guidelines bring significant changes:
- UPI Lite transactions up to ₹1,000 no longer require a PIN (doubled from ₹500)
- Wallet balance cap increased to ₹5,000 (from ₹2,000)
- Daily transaction limit remains ₹4,000
These updates aim to facilitate small-value transactions for everyday purchases, making payments faster and more efficient.
UPI Transaction Growth
According to a TOI report, NPCI recorded 16.58 billion UPI transactions in October 2024, valued at ₹23.5 trillion. This represents a 10% increase in volume and 14% rise in value from the previous month. The festive season drove person-to-merchant transactions, highlighting the need for these UPI Lite upgrades.
Conclusion
The updates to UPI Lite are designed to enhance user convenience while maintaining security through transaction limits and controlled usage. With these changes, UPI Lite is poised to become an even more popular choice for digital payments.
