The facility of auto-replenishment i.e. automatic money credit will be started in UPI Lite Wallet. In the monetary policy meeting, the central bank RBI has also taken some important decisions related to banking regulation and fintech. One decision is also related to UPI, which is important for the convenience of users. Actually, RBI has announced changes in the rules to promote ‘UPI-Lite’, the facility of making payments without entering a PIN.
What is UPI?
UPI Lite works exactly like UPI. Under this, transactions of less than Rs 500 can be done easily. UPI Lite uses NPCI Common Library Application to process these payments. With its help, it easily uses the UPI ecosystem with the help of mobile phones. UPI Lite provides convenience to users during small transactions. Due to this, the bank’s core banking system does not have to do real time processing. Also, there is no risk in this.
RBI Governor Shaktikanta Das said that to promote UPI Lite, it has been proposed to bring it under the E-Mandate framework. This will introduce a new facility for customers.
Auto-replenishment facility will be introduced in UPI Lite Wallet. That is, if someone has less balance than the set limit, then money will automatically come in the UPI Lite Wallet.
Auto credit facility
RBI’s proposal is to eliminate the need for additional authentication or pre-debit notification through auto-replenishment facility. This will make it easier for customers to make small value digital payments.
RBI said, ‘Since there is always fund in the customer’s UPI account and money goes to the Lite Wallet from it, so in case the amount falls below the set limit, money will automatically go to the wallet. For this, there will be no need for additional authentication i.e. giving separate permission.’
RBI said, ‘Since there is fund in the customer’s UPI account and money goes to the Lite Wallet from it, so in case the amount falls below the set limit, money will automatically go to the wallet. For this, there will be no need for additional authentication i.e. giving separate permission.’ UPI Lite came in September 2022
The UPI Lite facility was started in September 2022. It was launched to make the UPI payment process easier. This facility is being provided on many UPI platforms including Paytm. With its help, you can easily do UPI transactions, for which there is no need to enter PIN.
Under the UPI Lite facility, currently customers can put up to Rs 2,000 in their UPI Lite Wallet and can make payment up to Rs 500 without entering a PIN. Its limit has been fixed so that it is not misused and customers do not fall prey to any fraud.