UPI New Feature: Not enough balance? UPI Lite can be loaded quickly with auto top-up; Check how to use and when to use

Not enough balance to pay on UPI Lite? Well, thanks to the new UPI Lite auto top-up feature, soon your UPI Lite balance will automatically reload when it falls below a certain threshold. To make your UPI payments more convenient, National Payments Corporation of India (NPCI) has recently introduced the Auto Top-up feature in UPI Lite. What is the auto-top feature in UPI Lite? How UPI Lite Auto-Top will benefit you? Read on to find out.

What is UPI Lite? How does UPI Lite work?

UPI Lite is a wallet that allows users to make small value transactions without using a UPI PIN. How does UPI Lite work? It’s simple — just like any other wallet, you just need to add money from your bank account to your UPI Lite wallet, and then you can use the preloaded amount to pay through it. Most of the popular UPI apps like Google Pay, PhonePe, Paytm and BHIM allow UPI customers to use UPI Lite.

UPI Lite Range:

Since it is designed for low-value transactions, the maximum limit for transactions through UPI Lite is Rs.500. The maximum balance you can keep in your UPI Lite wallet is Rs 2,000.

What is the current process for loading money on UPI Lite?

Currently, every time your UPI Lite balance runs out, you have to reload it from your bank account to make more payments using the wallet. With the new auto top-up feature, NPCI plans to do away with the current process of manually reloading the UPI Lite wallet.

New UPI Lite Feature: How UPI Auto Top-Up Feature Works?

In a press release dated August 27, 2024, NPCI said, “With this new feature, the UPI Lite balance will be automatically reloaded by the amount selected by the user, without exceeding the UPI Lite balance limit, whenever it falls below the minimum limit. Set by them.”

Let’s explain how the new UPI Lite auto top-up option will work: UPI customers will soon be able to set a minimum balance on UPI Lite, Rs. Say 100. Your UPI Lite balance is Rs. When it drops to 100, it will automatically reload. A fixed amount from your bank account. You also need to set the reload amount which is Rs. should not exceed 2,000. UPI Lite account allows up to five top-ups in a day. The UPI Lite auto top-up feature eliminates the need for manual top-up, ensuring users always have sufficient funds for transactions. NPCI said, “It enhances the convenience and adaptability of UPI Lite by automating the fund reloading process.”

When will you be able to use the new UPI Lite Auto Top-up feature?

NPCI has mandated that issuer banks should support auto top-up functionality in UPI Lite, where banks should be allowed to generate a UPI Lite command and allow debits whenever a request comes from the PSP/app. It also said that UPI apps will support the required functionality and interface in their app so that customers can use automatic top-up on UPI Lite. In addition, NPCI said members should ensure successful implementation of the mandate created. All necessary checks should be in place at the time of making the order, the regulator added.

NPCI said the Issuing Bank will inform the customer of all mandate related activities. “Members who are live on UPI Lite are requested to take note of the changes and enable the feature by 31 October 2024,” NPCI said.

So, from November 1, 2024, you can use the auto-top-up feature in UPI Lite.

UPI Lite has become popular because you don’t need to use your main bank account for every small value transaction. Also, you don’t need to enter your UPI PIN to make payments through UPI Wallet. An additional auto top-up feature in UPI Lite will further benefit users for day-to-day transactions.