The Reserve Bank of India is introducing an auto-replenishment feature for the UPI Lite wallet under the e-mandate framework. This new facility will allow customers to automatically reload their UPI Lite wallet when the balance falls below a certain threshold set by the user.
Currently, the UPI Lite wallet allows customers to load up to ₹2000 and make payments up to ₹500 per transaction. With the new auto-replenishment feature, users won't have to manually reload their wallet each time the balance is low. Instead, it will automatically top up from their bank account, ensuring a seamless payment experience.
This update is based on feedback from various stakeholders and aims to make UPI Lite more convenient, the RBI said in a note. Since the funds move from the customer's bank account to the wallet, additional authentication or pre-debit notifications won't be required.
RBI left its benchmark interest rate unchanged, as expected, keeping its focus on inflation amid policy uncertainty following an unexpected election result. The Monetary Policy Committee voted four-to-two to keep the benchmark repurchase rate at 6.5% Friday. The six-member panel also decided to retain its hawkish policy stance of “withdrawal of accommodation.”
The decision comes just days after a smaller-than-expected poll victory for Prime Minister Narendra Modi’s party, forcing it to share power in a coalition government and raising the possibility that it may veer from its relatively conservative fiscal path.