PC: livemint
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.
By issuing a circular on August 27, the National Payments Corporation of India (NPCI) has announced that this UPI Lite feature will soon be implemented from October 31 this year.
The UPI Lite balance will be automatically reloaded with the amount chosen by the user. It aims to facilitate PIN-less transactions of less than ₹500, with a maximum limit of ₹2,000 on UPI Lite balance at any point of time.
However, it is important to note that reloading will not exceed the UPI Lite balance limit, which is ₹2,000.
Additionally, users will also be able to cancel the auto top-up mandate at any time, the NPCI circular reads.
What is UPI Lite?
It is a new payment solution that enables UPI users to make small-value transactions (less than ₹500) without entering a PIN. These transactions happen without using the core banking system of the remitter’s bank, thereby eliminating clutter in users’ passbooks.
On UPI Lite, the user can simply open the app and make payments without entering the PIN.
The latest guidelines include the following points:
1. NPCI has directed that issuing banks shall support auto top-up functionality on UPI Lite, wherein banks should allow creation of UPI Lite mandate and allow debit whenever a request comes from a PSP/App.
2. NPCI has also directed that UPI Apps shall support the necessary functionality and interface on their Apps to enable customers to use Auto Top-up on UPI Lite.
3. Additionally, members must ensure that the mandate created is executed successfully. All the required verifications must be present while creating the mandate.
4. But the number of auto-replenishment transactions for each UPI Lite account should be limited to five in a day.
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