New UPI LITE Transaction Limits
The National Payments Corporation of India (NPCI) has introduced revised limits for UPI LITE transactions. As per the notification issued by the Reserve Bank of India (RBI) on December 4, 2024, the per transaction limit for UPI LITE Wallet has now been increased to ₹1,000, while the overall wallet limit has been raised to ₹5,000.
Auto Top-up Feature in UPI LITE
A significant addition to UPI LITE is the Auto Top-up feature, which eliminates the need for frequent manual recharges. Users can now set a predefined top-up limit, ensuring that funds are automatically added to their UPI LITE wallet from their linked bank account when the balance runs low.
Example:
If a user sets an Auto Top-up limit of ₹1,000 and their wallet balance is depleted, ₹1,000 will be instantly deducted from their bank account and credited to the UPI LITE wallet. This feature simplifies digital transactions by ensuring seamless payments.
Updated Transaction and Wallet Limits
As per the revised guidelines from NPCI:
- Per transaction limit: ₹1,000
- Total wallet balance limit: ₹5,000
Previously, users could maintain a maximum balance of ₹2,000 in their UPI LITE wallet, but this limit has now been increased to ₹5,000.
Implementation Timeline for New Limits
According to NPCI’s circular dated February 27, all banks and participating institutions must implement these changes by June 30, 2025. As part of this transition:
- Banks will identify UPI LITE accounts with no transactions in the past six months.
- The remaining balance in such accounts will be refunded to the users’ bank accounts.
What is UPI LITE?
UPI LITE functions as a digital wallet, enabling users to make payments of up to ₹1,000 without requiring a PIN. This service is integrated with over 50 UPI applications, including Google Pay, PhonePe, BHIM, and Paytm. UPI LITE facilitates quick and hassle-free small transactions, making everyday payments more convenient.
