Starting October 31, UPI Lite will introduce an auto top-up feature , making digital transactions even smoother for users. This new feature, outlined in a circular from the National Payments Corporation of India ( NPCI ), aims to enhance the user experience by automating balance recharges .
# What is UPI Lite?
UPI Lite allows seamless, PIN-free transactions for amounts under ₹500. With a balance limit of ₹2000, it simplifies small payments while ensuring convenience. The upcoming auto top-up feature is set to make the process even more user-friendly by reloading the balance automatically when it drops below a limit set by the user.
# How Will Auto Top-up Work?
# Key Guidelines for Banks and PSPs
NPCI has issued several directives for banks and Payment Service Providers (PSPs) to implement this feature effectively:
Launch Timeline
The auto top-up feature will be live by October 31, 2024, with banks and apps expected to support the new functionality by this date. Users can look forward to an even more seamless experience with UPI Lite, making everyday digital payments hassle-free.
# What is UPI Lite?
UPI Lite allows seamless, PIN-free transactions for amounts under ₹500. With a balance limit of ₹2000, it simplifies small payments while ensuring convenience. The upcoming auto top-up feature is set to make the process even more user-friendly by reloading the balance automatically when it drops below a limit set by the user.
# How Will Auto Top-up Work?
- Automatic Reloads: Whenever the UPI Lite balance falls below a specified minimum, it will automatically reload by an amount chosen by the user (up to the ₹2000 limit).
- User Control: Users can easily revoke the auto top-up mandate at any time through the app.
- No Pre-debit Notification: Since UPI Lite balance resides with the user's bank and can be refunded instantly, there's no need for pre-debit notifications, streamlining the process further.
# Key Guidelines for Banks and PSPs
NPCI has issued several directives for banks and Payment Service Providers (PSPs) to implement this feature effectively:
- Support for Auto Top-up: Banks live on UPI Lite must enable auto top-up functionality, ensuring smooth debits when required.
- App Integration: UPI apps should incorporate features allowing users to manage auto top-up settings easily.
- Transaction Limits: PSPs must limit auto-replenishments to five transactions per day per UPI Lite account.
- Customer Communication: Issuer banks must keep customers informed about mandate-related activities and ensure compliance with NPCI's guidelines.
Launch Timeline
The auto top-up feature will be live by October 31, 2024, with banks and apps expected to support the new functionality by this date. Users can look forward to an even more seamless experience with UPI Lite, making everyday digital payments hassle-free.
