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The Reserve Bank of India on Friday announced introduction of UPI Lite e-mandate to make payment processes smoother.
In late 2022, UPI Lite was introduced to facilitate quick and seamless small-value payments through an on-device wallet.
Now, there are changes coming to UPI Lite announced by the RBI. Let's take a look at what's changing:
What Will Change Now?
To encourage more people to use UPI Lite, the RBI has proposed integrating it into the e-mandate framework.
Today, the RBI announced that UPI Lite will now be integrated with the e-mandate framework, facilitating auto-replenishment of UPI Lite balances, said Governor Shaktikanta Das.
This means customers will have the option to automatically top up their UPI Lite wallets when the balance falls below a certain limit set by them. This change will make it even easier to make small digital payments.
What is Auto-replenishment?
Auto-replenishment of UPI Lite means that your account is set up to automatically add funds when your balance is low.
It is like having a backup plan so you do not run out of money in your account when you need it for transactions.
This feature saves you the hassle of manually adding funds each time your balance is low.
What is UPI Lite?
UPI Lite is a payment solution specifically designed for transactions below Rs 500. Currently, it only supports sending money.
The goal of UPI Lite is to offer a user-friendly experience for small transactions without relying on real-time processing by the remitter bank's core banking systems while still maintaining sufficient risk management measures.
Additionally, the RBI Governor announced today that they are examining and taking action on digital payment fraud, addressing various aspects to tackle these issues.
