UPI Lite Auto Top UP Feature to be rolled out on Oct 31 know everything here

If you are using UPI Lite for small transactions then there is good news for you. From October 31, you will be able to use the auto top-up option to reload the amount of your choice in your UPI Lite account. National Payments Corporation of India (NPCI) has issued a circular on August 27 announcing that this UPI Lite feature will soon go live from October 31 this year. Let us know about this UPI Lite feature.

UPI Lite balance will be automatically reloaded with the amount selected by the users. This will facilitate PIN-less transactions of less than Rs 500 with a maximum UPI Lite balance limit of Rs 2,000 at any time. However, it is worth noting that reloading will not exceed the UPI Lite balance limit of Rs 2,000. According to the NPCI circular, apart from this, users will also be able to cancel the auto top-up mandate at any time.

What is UPI Lite?

UPI Lite is a new payment solution that allows UPI users to make small amount transactions (less than Rs 500) without entering a PIN. These transactions occur without using the core banking system of the sender’s bank, providing users with an uncluttered passbook. On UPI Lite, users can just open the app and make payment without entering the PIN.

how will it work

NPCI has directed that issuing banks shall support the function of auto top-up on UPI Lite, wherein banks should allow creation of UPI Lite mandate and facilitate debit as and when requested from the PSP/App. Needed NPCI has also clarified that for customers to avail auto top-up on UPI Lite, UPI apps will support the necessary functions and interfaces on their apps. Apart from this, the members will have to ensure that the mandate is applied properly. All necessary verifications should be done at the time of mandate. The number of auto-replenishment transactions will be limited to 5 in a day for each UPI Lite account.