Starting November 1, 2024, two significant updates to the UPI system have been rolled out by the National Payments Corporation of India (NPCI). These changes aim to improve the convenience of small-value digital transactions, making them faster and easier. Users will see the effects of these updates in their daily UPI transactions.
One of the key changes includes an increase in the transaction limit for UPI Lite. Users can now make transactions up to Rs 1,000 without entering a PIN, up from the previous limit of Rs 500. This change makes UPI Lite more convenient for quick, small payments without the need for additional security steps.
In addition to higher transaction limits, the wallet balance cap for UPI Lite has also been increased. The maximum wallet balance is now Rs 5,000, up from Rs 2,000. This enhancement gives users more flexibility to store funds for their frequent small-value transactions.
Although the wallet balance limit has increased, the daily transaction limit remains at Rs 4,000. This ensures that while users can carry more funds in their wallets, they still have a controlled limit on how much they can spend each day. This helps maintain security and prevent fraud.
A new auto top-up feature has been introduced to streamline UPI Lite payments. When the wallet balance falls below a set threshold, the system automatically adds funds from the user’s linked bank account. Users can choose the top-up amount and the frequency of recharges, up to five times a day.
To activate the auto top-up, users need to set up a mandate via their UPI app. This mandate allows for automatic transfers from the bank account to the UPI Lite wallet. However, users retain full control over the process, with the option to cancel the mandate at any time for added flexibility.
These changes aim to boost small-value transactions while ensuring security. The increased limits and auto top-up feature allow for seamless, PIN-less payments under Rs 500, making everyday UPI payments faster and more efficient. This is expected to encourage more users to engage in digital payments for daily purchases.