• Source:JND
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UPI Lite News: The National Payments Corporation of India (NPCI) has raised the per-transaction limit for UPI Lite, allowing users to make payments of up to Rs 1000 at a time, an increase from the previous limit of Rs 500. Furthermore, the total wallet balance limit has been elevated from Rs 2000 to Rs 5000. These changes are effective immediately, according to NPCI’s latest circular.

This adjustment aligns with the Reserve Bank of India’s (RBI) earlier announcement aimed at enhancing the convenience of small-value digital transactions. NPCI has urged all banks to implement the new limits promptly.

Seamless Transfer of Unused Wallet Balance

NPCI has also instructed payment service provider banks and app companies to facilitate the automatic transfer of unused UPI Lite wallet balances back to users' bank accounts. This feature is expected to be operational by March 31, allowing users to access their funds when necessary. Currently, while users can add money to their UPI Lite wallet, there is no option available for withdrawal.

An Auto Top-up Feature Has Been Introduced

To improve user convenience, an auto top-up feature has been launched. This allows funds to be automatically deducted from the linked bank account and added to the UPI Lite wallet when the balance runs low. Users can activate this feature through their payment app by going to the UPI Lite section, selecting ‘Add Money,’ specifying the amount they want, choosing their bank, and entering their PIN to confirm. Additionally, customers can set their own auto top-up limit, with a maximum wallet balance of Rs 5000.

No PIN Needed for Payments Under Rs 500

Another significant update is that UPI Lite users will no longer have to enter their PIN for transactions under ₹500, making low-value payments quicker and more convenient.

Moreover, NPCI has directed banks to identify inactive UPI Lite accounts that haven't had any transactions in the past six months. The balance in these accounts will be automatically returned to the users' bank accounts.

With these improvements, NPCI is enhancing UPI Lite’s functionality, making digital transactions more user-friendly and efficient for millions of customers.