New rules took effect on November 1 for UPI transactions via Google Pay, PhonePe, and Paytm. The National Payments Corporation of India (NPCI) has raised the transaction limit for UPI Lite and introduced an auto top-up feature for wallets. A notable aspect of UPI Lite is that it allows users to make UPI payments without needing a PIN or password. UPI has become the most popular payment method among Indian users, and last year, India set a new record for UPI transactions.
So, what exactly is UPI Lite?
With UPI Lite, users can maintain a maximum balance of Rs 2,000 in their wallet and conduct transactions of up to Rs 500 at a time. This service was specifically designed for individuals who frequently make small payments through UPI. You can fund your UPI Lite wallet directly from your bank account for these minor transactions. Once the balance in your UPI Lite wallet is depleted, you will need to recharge it manually. However, starting from November 1, NPCI has introduced the handy auto top-up feature.
This feature automatically replenishes your UPI Lite balance from your bank account when it runs low. Nevertheless, there’s a cap in place: users can only top up their accounts a maximum of five times a day, totaling Rs 10,000 across those transactions.
How can you enable UPI Lite?
Enabling UPI Lite in payment apps like Google Pay, PhonePe, or Paytm is a breeze. Just open any of these apps and tap on your profile picture icon. You’ll see the option for PIN-free UPI Lite right below. Follow the prompts on your screen, and you’ll be set up with the UPI Lite service in no time.
In other news, the Reserve Bank of India (RBI) has announced a substantial increase in the transaction limits for UPI Lite and UPI 123PAY, with the aim of improving access to digital payments. The limit for UPI Lite has been raised from Rs 500 to Rs 1,000, while the wallet limit has increased from Rs 2,000 to Rs 5,000. Additionally, the transaction limit for UPI 123PAY has been doubled from Rs 5,000 to Rs 10,000.
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