Starting 1 November 2024, the National Payments Corporation of India (NPCI) has implemented two significant changes to the Unified Payments Interface (UPI) system aimed at enhancing small-value digital transactions.
First, the transaction limit for UPI Lite has been raised, allowing users to complete transactions of up to Rs 1,000 without the need to enter a pin, an increase from the previous limit of Rs 500. Additionally, the maximum balance for UPI Lite wallets has been raised from Rs 2,000 to Rs 5,000, while the daily transaction limit remains at Rs 4,000.
The new auto top-up feature will automatically replenish a user's UPI Lite account when the balance dips below a set threshold. Users can choose their preferred top-up amount, with a maximum of five automatic recharges allowed per day. To activate this feature, users need to establish a mandate in their UPI app, which allows automatic fund transfers from their bank account to their UPI Lite wallet. Importantly, users can cancel this mandate at any time, ensuring they retain control over their transactions.
These updates are designed to simplify the use of UPI Lite for everyday small-value payments while maintaining security through established transaction limits.
In October 2024, NPCI reported 16.58 billion UPI transactions, totalling Rs 23.5 trillion, marking a 10 per cent increase in transaction volume and a 14 per cent increase in value compared to September. This growth is largely attributed to an uptick in person-to-merchant transactions during the festive season.
