The National Payments Corporation of India (“NPCI”) has introduced the feature of Auto Top Up in UPI Lite. With this feature, the UPI Lite balance will automatically get reloaded by an amount chosen by the user, whenever the balance falls below a limit set by them.
Users will also be given the option to revoke the Auto Top up mandate at any time. Since the balance resides with the user’s bank account, UPI Lite can be deleted anytime with instant refund of UPI Lite balance to user’s bank account, the requirement of pre-debit notification which is a usual mechanism for merchant mandate payments, has been dispensed with.
Banks and PSP/Apps have to ensure the following and enable the feature by 31st Oct, 2024:
- UPI Apps have to support the necessary functionality and interface on their application for the customers to use Auto top up on UPI Lite.
- PSP/APPs have to put necessary control to limit the number of auto-replenishment transactions to 5 per day per LITE Account.
Background:
Last year NPCI had introduced UPI Lite which allows PIN-less transactions under Rs. 500/-with a maximum UPI Lite balance of Rs.2,000/-. Now, to further enhance UPI Lite experience, the present circular has been issued by NPCI.
Please refer to the hyperlink below for a detailed read of the circular.
Source: National Payments Corporation of India
