UPI Lite Auto Top-Up function: When your UPI Lite balance drops below a certain amount, the National Payments Corporation of India (NPCI) plans to launch a new function called UPI Lite auto top-up. The purpose of this function is to improve the ease and convenience of your UPI payments.

What is UPI Lite?

With a wallet called UPI Lite, users may conduct small-value transactions without a UPI PIN. Adding funds to your wallet from your bank account and using the pre-loaded amount to make payments is all it takes to utilize UPI Lite. Customers of several well-known UPI applications, including Google Pay, PhonePe, Paytm, and BHIM, may use UPI Lite.

With a 500 rupee transaction cap, UPI Lite is intended for small-value transactions. A report states that the maximum amount you may keep in your UPI Lite wallet is Rs 2,000.

How Does the UPI Lite Auto Top-Up Feature Operate?

To continue making payments, you currently have to manually replenish your UPI Lite amount from your bank account when it runs out. By automatically replenishing your UPI Lite wallet when the amount drops below a certain threshold and removing the need for user involvement, the new auto top-up function seeks to simplify this procedure.

The UPI Lite balance will now automatically be refilled by the user, up to the UPI Lite balance limit, anytime the balance drops below a minimum limit that they have specified, according to a recent announcement from NPCI.

The next auto top-up function of UPI Lite would let customers to designate a minimum balance, say Rs 100. The user's associated bank account will automatically top up the UPI Lite balance with a specified amount whenever it drops below this fixed level.

The user must also choose the reload amount, which is limited to Rs 2,000. There will be a daily limit of five top-ups allowed on the UPI Lite account.

Issuer banks have received instructions from NPCI to activate UPI Lite's auto top-up feature. It is mandatory for banks to facilitate the establishment of UPI Lite requirements and authorize withdrawals upon receiving requests from Payment Service Providers (PSPs) or applications.

Additionally, UPI apps must have the capabilities and user interface required by NPCI in order to support auto top-up on UPI Lite.

Issuer banks will be responsible for informing clients of any mandate-related actions, according to the NPCI. "Members who are live on UPI Lite are requested to hereby note the changes and enable the feature by 31st October 2024," stated NPCI.

According to the report, customers should be able to utilize UPI Lite's auto top-up feature as of November 1, 2024.