The National Payments Corporation of India (NPCI) has revised UPI Lite limits in line with the Reserve Bank of India’s (RBI) announcement last year. Additionally, NPCI has introduced a new ‘Transfer Out’ feature, allowing users to move money from their UPI Lite balance back to their bank account without disabling the service. As per a circular dated February 21, 2025, all issuer banks, PSP banks, and UPI apps must implement these changes by March 31, 2025.
Notably, Customers can enable auto top-up for UPI Lite balance replenishment, ensuring seamless transactions. As per NPCI’s circular on ‘Introduction of Auto Top-up on UPI Lite,’ this feature allows automatic fund transfers when the balance falls below a set limit.
The new ‘Transfer Out’ feature gives users greater control over their funds by enabling them to transfer money from their UPI Lite balance to their linked bank account without deactivating UPI Lite. This makes managing small payments more flexible and convenient.
UPI Lite is designed for quick, PIN-less transactions for small payments. Following the RBI’s notification on December 4, 2024, the transaction limits have been increased:
-Per transaction limit: Raised from Rs 100 to Rs 500
-New limit per transaction: Rs 1,000
-Total balance limit: Rs 5,000
Banks operating UPI Lite will identify accounts that have had zero transactions in the last six months. Any remaining balance in these inactive accounts will be refunded to the user’s original bank account. The implementation deadline for this update is June 30, 2025.
Open Your preferred UPI Lite-enabled app (Google Pay, PhonePe, Paytm, etc.).
: Tap on the payment option within the UPI Lite section.
: Input the UPI ID or scan the QR code of the recipient.
Specify the amount (up to ₹500 per transaction).
Complete the payment instantly without entering a UPI PIN.
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