UPI Lite & Small Payments: New Auto Recharge Features, Limits Effective November 1

Starting November 1, 2024, managing your UPI Lite balance will become more convenient with a new auto-recharge feature. This enhancement, implemented by the National Payments Corporation of India (NPCI), will automatically top up your UPI Lite account when the balance drops below a specified threshold to ensure a smooth payment process.

Moreover, the Reserve Bank of India (RBI) has increased the transaction limit for UPI Lite, which is expected to be launched soon.

The auto top-up feature allows users to set a predefined balance threshold. When the account balance falls below this threshold, it will be automatically topped up with a selected amount specified by the user. This feature facilitates fast and secure transactions without the need for a PIN for payments below Rs 500.

The UPI Lite account will top up automatically when it falls below the selected minimum balance. Users can set an automatic top-up mandate through their UPI app, giving permission for funds to be taken from their bank account and added to their UPI Lite balance as needed. Users have the ability to revoke the mandate at any time, while retaining control over their account.

Additionally, automatic top-ups are limited to five transactions per day to monitor usage. UPI Lite is designed for quick transactions, eliminating the need for PIN verification for amounts below Rs 500. Users can easily make payments through their UPI app without involving the bank’s core systems.

To encourage greater usage, the Reserve Bank of India recently declared expanded UPI Lite limits:

The transaction limit for each UPI Lite transaction will increase from Rs 500 to Rs 1,000.
The maximum balance allowed in a UPI Lite wallet will increase from Rs 2,000 to Rs 5,000. Despite these changes, the daily transaction limit will remain at Rs 4,000.

New UPI record in October 2024

October saw a record 16.58 billion Unified Payments Interface (UPI) transactions totaling Rs 23.5 trillion, marking the highest figures since the system’s inception in April 2016. This surpassed the peak previously of 15.04 billion transactions in September 2024 and Rs.24. trillion in July. The increase in transactions was primarily driven by person-to-merchant transactions, particularly during the October festive season.

This milestone marked the first time UPI crossed Rs 16 billion in volume and Rs 23 trillion in value. Compared to September, there was a 10% increase in volume and a 14% increase in value. Data from the National Payments Corporation of India (NPCI) shows that in August, there were 14.96 billion UPI transactions worth Rs 20.61 trillion.

In October, the volume of daily UPI transactions exceeded 535 million, with a total value of 75,801 million lei. This is a significant increase compared to the 501 million transactions and the value of Rs 68,800 crore recorded in September. From year to year, in October there was a 45% increase in the volume of transactions and a 37% increase in the value of transactions.