Low On Balance? UPI Lite To Soon Have Auto Top-up Feature Launching On October 31 -- All About It

New Delhi: National Payments Corporation of India (NPCI) has issued a circular on auto top-up feature on UPI lite, that will allow the balance to be automatically reloaded whenever it falls below a minimum limit set by the user.

UPI LITE enhances the user experience by allowing PIN less transactions under Rs 500 with a maximum UPI LITE balance limit of Rs 2000 at any point of time.

NCPI has said that with this new feature, the UPI LITE balance will automatically be reloaded by an amount chosen by the user, not exceeding the UPI LITE Balance limit, whenever the balance falls below a maximum limit set by them.

This increases the convenience and adaptability of UPI LITE by automating the process of reloading funds. Additionally users shall be provided with the option of revoking the auto top-up mandate at any point of time by the PSP/App.

Since the balance resides with the users' bank and the UPI LITE can be deleted anytime with instant refund of UPI LITE balance to users' main bank account, the requirement of pre-debit notification which is a usual mechanism for merchant mandate payments, has been dispensed with.

NCPI has asked banks and PSP/App to ensure the following guidelines

1. Issuer banks live on UPI LITE shall support the functionality of auto top-up on UPI LITE wherein the banks should allow creation of UPI LITE mandate and allow debits whenever the request comes from PSP/App.

2. UPI Apps shall support the necessary functionality and interface on their App for the customer to use auto top-up on UPI LITE

3. Members shall ensure that the mandate created successfully are executed successfully

4. PSP/Apps shall put necessary controls to limit the number of auto-replenishment transactions to 5 per day per LITE account

5. Issuer bank shall ensure the necessary communication to teh customer of all the mandate related operations

In addition to this bank shall also be required to follow the necessary guidelines released by NCPI on auto top-up UPI LITE from time to time.

Members who are live on UPI LITE are requested to hereby note the changes and enable the feature by 31 October 2024.