New UPI Lite features explained: From 'auto-pay' feature to higher transaction limits, here's what is changing

The National Payments Corporation of India (NPCI) has announced significant upgrades to UPI Lite, that went into effect from November 1. These changes are aimed at enhancing user experience for small transactions. These improvements include an increased transaction limit and an auto top-up feature.

Firstly, UPI Lite users can now conduct transactions up to ₹1,000 without entering a PIN, doubling the previous limit of ₹500. Additionally, the maximum wallet balance has been raised from ₹2,000 to ₹5,000, while the daily spending cap remains at ₹4,000. These changes provide greater flexibility for daily expenses such as groceries and public transport, reducing the frequency of wallet recharges.

The second major feature is the auto top-up option, which ensures a seamless payment experience. Users can set up a mandate through their UPI app to allow automatic fund transfers from their bank account to their UPI Lite wallet when the balance falls below a chosen threshold. This feature supports up to five automatic recharges per day, ensuring the wallet is always ready for use without manual intervention.

The NPCI's updates are designed to make small-value digital payments more efficient and user-friendly. By increasing transaction limits and introducing automated wallet top-ups, UPI Lite becomes a more practical choice for quick, PIN-free payments.

In October 2024, UPI continued its rapid growth, with NPCI reporting 16.58 billion transactions worth ₹23.5 trillion, reflecting a 10% increase in volume and a 14% rise in transaction value from the previous month, spurred by festive season spending.

In summary, the new updates allow users to spend up to ₹1,000 per transaction without a PIN and hold up to ₹5,000 in their UPI Lite wallet. The auto top-up feature ensures uninterrupted payments for everyday needs. These enhancements are set to improve UPI Lite’s usability for quick, everyday transactions, making digital payments more convenient and hassle-free.