In a bid to simplify small-value transactions, the National Payments Corporation of India (NPCI) is introducing an auto top-up feature for UPI Lite users. Beginning October 31, 2024, users will be able to automatically reload their UPI Lite balance, enhancing the convenience of everyday transactions.

UPI Lite is designed for quick, PIN-less payments up to Rs.500, with a maximum balance limit of Rs.2,000. This new auto top-up feature will allow users to set a preferred amount for automatic reloading whenever their balance falls below a specified threshold. This aims to eliminate the hassle of manual reloading and ensure that users always have sufficient funds for transactions.

Users will have the flexibility to cancel the auto top-up feature at any time and can perform up to five auto top-ups per day. Banks will need to support this new feature, creating mandates to facilitate easy reloading. UPI apps will also update their platforms to help users manage their auto top-up preferences effectively.

The introduction of auto top-up is part of NPCI’s strategy to make UPI Lite an even more user-friendly solution for low-value transactions. This feature is expected to streamline payments while reducing the strain on core banking systems, ensuring efficient processing of everyday transactions.

Understanding UPI Lite: UPI Lite is a simplified version of the Unified Payments Interface (UPI), designed specifically for small-value payments. It allows users to make fast, PIN-less transactions for amounts typically under Rs.500 without directly accessing their main bank account. Instead, UPI Lite maintains a wallet-like balance with a maximum cap of Rs.2,000. This system is particularly useful for quick purchases such as groceries, transportation, and small retail items.

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