If you use UPI Lite for low-value transactions, we have good news for you. Starting October 31, you will be able to use Automatic recharge option to recharge the amount of your choice in your UPI Lite account.
By circular dated August 27, the National Payments Corporation of India (NPCI)) has announced that this UPI Lite feature will soon be available starting from October 31 this year.
The UPI Lite balance will be automatically recharged with an amount chosen by the user. This is intended to facilitate PIN-less transactions as indicated below. ₹500 with a maximum UPI Lite balance limit of ₹2,000 at any time.
However, it is vital to note that the recharge will not cause the UPI Lite balance limit to be exceeded, which is ₹2,000.
Additionally, users will also be able to revoke the auto-recharge mandate at any time, the NPCI circular said.
What is UPI Lite?
It’s a New payment solution which allows UPI users to make small value transactions (below) ₹500) without the need to enter a PIN. These transactions are carried out without using the sender’s bank’s core banking systems, allowing users to have a savings account.
In UPI Lite, the user can simply open the app and make the payment without having to enter the PIN.
The latest guidelines involve the following points:
1. NPCI has mandated issuing banks to support auto-recharge functionality in UPI Lite, wherein banks should allow creation of UPI Lite mandates and allow debits whenever the request comes from the PSP/App.
2. NPCI has also mandated that UPI apps shall support necessary functionality and interface in their app so that customers can avail auto recharge on UPI Lite.
3. In addition, members must ensure that the created mandate is executed successfully. All necessary validation must be present at the time of the mandate creation.
4. But the number of auto-replenishment transactions will be limited to five per day for each UPI Lite account.
NPCI is projecting UPI Lite as a customer-friendly approach to enable low-value transactions without using the core banking systems of a sending bank in real-time, while providing adequate risk mitigation.
Disclaimer:
The information contained in this post is for general information purposes only. We make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the post for any purpose.
We respect the intellectual property rights of content creators. If you are the owner of any material featured on our website and have concerns about its use, please contact us. We are committed to addressing any copyright issues promptly and will remove any material within 2 days of receiving a request from the rightful owner.