From November 1, new rules have come into effect for UPI transactions through Google Pay, PhonePe, and Paytm. The National Payments Corporation of India (NPCI) has increased the transaction limit of UPI Lite and also introduced an auto top-up facility for wallets. The specialty of UPI Lite is that users can make UPI payments even without a PIN or password. UPI has become the most used payment system in India, and last year India also set a new record in UPI transactions.

What Is UPI Lite?

With the help of UPI Lite, users can keep up to Rs 2,000 in their wallet and make transactions of up to Rs 500 at a time. This service is specially designed for those who make small payments often through UPI. You can fund the UPI Lite wallet directly from your bank account. Earlier, when the wallet balance was exhausted, it had to be recharged manually, but now, from November 1, NPCI has also started the auto top-up facility.

With this feature, when your UPI Lite balance gets low, it automatically recharges the balance from your bank account. However, there is also a limit on this feature: a maximum of five top-ups can be done in a day and a total of Rs 10,000.

How To Activate UPI Lite?

Turning on UPI Lite in apps like Google Pay, PhonePe, or Paytm is very easy. Just open the app, tap your profile icon, and select the PIN-free UPI Lite option at the bottom. Follow the instructions on the screen, and you will be able to use UPI Lite in no time.

Also, the Reserve Bank of India (RBI) has significantly increased the transaction limit of UPI Lite and UPI 123PAY to promote digital payments. The transaction limit of UPI Lite has been increased from Rs 500 to Rs 1,000, while the wallet limit has increased from Rs 2,000 to Rs 5,000. Also, the transaction limit of UPI 123PAY has been increased from Rs 5,000 to Rs 10,000.