UPI Lite: Add Money to Wallet from Bank Without Approvals

To promote wider adoption and streamline the user experience, the Reserve Bank of India (RBI) has released an upgrade for the UPI Lite system. With the most recent proposal, users will be able to immediately top off their UPI Lite wallets without requiring extra bank account permissions, since UPI Lite will now fall under the e-mandate framework. This is all the information we have.

The purpose of this auto-replenishment feature is to start as soon as the wallet balance drops below a threshold that you set. This simplifies the procedure for small-value digital payments because users won’t need to manually top off their wallets whenever the amount becomes low. With this modification, a more cashless culture is predicted to be encouraged as UPI Lite usage for everyday transactions becomes easier and more common.

UPI Lite was introduced in September 2022 to make small-value payments with an on-device wallet quick and simple. Users may manage transactions easily with this payment system, particularly those that are under Rs 500.

To process payments, the UPI Lite system makes use of the reliable NPCI Common Library (CL) application, which guarantees a seamless connection with the current UPI mobile infrastructure. For users, this system offers a dependable, legal, and globally recognized platform.

Users of UPI Lite are currently allowed 2,000 transactions per day, with a 500 maximum for any one payment. When it comes to handling routine transactions when efficiency and quickness are crucial, like buying groceries, using public transportation, or making minor retail purchases, these constraints are very helpful.

The goal of UPI Lite is to offer a simple way to handle small-value transactions. By avoiding the requirement for real-time processing by the remitter bank’s core banking systems, UPI Lite guarantees sufficient security measures are maintained while ensuring these transactions are quick and easy.

The RBI’s strategic approach to increase the acceptance of digital payments throughout the nation is the release of the e-mandate for UPI Lite.

However, because this option won’t require one’s agreement for the auto addition of money to wallets from banks, there’s a risk that some users may find this function uncomfortable or have privacy concerns. It’s unclear if customers will have the ability to turn off this function if they choose not to utilize it.

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