Running Low? UPI Lite’s Auto Top-up Feature to Launch on October 31 – Everything You Need to Know

New Delhi: The National Payments Corporation of India (NPCI) has introduced an auto top-up feature for UPI LITE, enabling users to automatically reload their balance when it drops below a predetermined limit set by them. This update, announced through a circular, is aimed at enhancing the user experience by automating balance reloading and supporting PIN-less transactions under Rs 500.

UPI LITE allows for a maximum balance limit of Rs 2,000, ensuring quick, seamless transactions. With the new auto top-up feature, the balance will automatically be replenished by an amount chosen by the user, whenever it falls below the threshold they set. This feature increases convenience, especially for frequent low-value transactions, while giving users control over their auto top-up preferences.

Additionally, users can revoke the auto top-up mandate anytime through their UPI app. Since the balance resides with the user's bank and can be refunded to the main account upon deleting UPI LITE, NPCI has waived the requirement for pre-debit notifications, typically required for merchant mandates.

NPCI has set a deadline of October 31, 2024, for banks and payment service providers (PSPs) to enable this feature. Key guidelines include:

1. Banks supporting UPI LITE must allow auto top-up creation and manage debits initiated by the PSP/app.
2. UPI apps must integrate the necessary interface for users to manage auto top-ups.
3. PSPs should limit auto-replenishments to five transactions per day per LITE account.
4. Banks are responsible for ensuring communication regarding mandate operations to users.

This update is expected to further simplify digital payments, making UPI LITE more adaptable for everyday use.