RBI plans auto-replenishment of UPI Lite wallet: What does it mean for users?

RBI is introducing an auto-replenishment facility for loading the UPI Lite wallet.

The Reserve Bank of India (RBI) on Friday proposed to bring UPI Lite within the ambit of the e-mandate framework by introducing an auto-replenishment facility for loading mobile payment wallets if balances go below thresholds set by the users.

For instance, if a user has set a floor of Rs 500 on her UPI Lite wallet and the balance goes below Rs 500, the wallet will automatically be loaded with Rs 2,000, the maximum limit for UPI Lite wallet.

Also read | RBI holds repo rate at 6.5%: No impact on home loan EMIs

What is UPI lite?

Launched by the National Payments Corporation of India (NPCI) in September 2022, this feature enables users to conduct up to Rs 500 worth of transactions without the need of a PIN, ensuring quicker processing. The total limit of UPI Lite balance for an on-device wallet is Rs 2,000 at any point in time.

UPI Lite is available on Paytm, BHIM App, GooglePay and other payment apps. Canara Bank, HDFC Bank, Indian Bank, Kotak Mahindra Bank, Punjab National Bank, State Bank of India, Union Bank of India and several other banks are live on the UPI Lite board.