New limits of UPI Lite transactions come into effect on THIS date, check details here

National Payments Corporation of India (NPCI) via its latest circular has introduced new limits for UPI LITE in line with the RBI’s announcement last year.

As per the RBI’s notification on Dec 4, 2024, UPI LITE limits were raised to ₹1,000 per transaction and ₹5,000 became the total limit. Replenishment of used limit will be allowed only in online mode with AFA.

Customer will have the option to set auto top up for limit replenishment as per NPCI circular ‘Introduction of Auto Top-up on UPI Lite’. Currently the transaction limit is ₹500 which is being raised to ₹1,000. Total limit at any point in time has been raised from ₹2,000 to ₹5,000.

When will the new limits be enforced?

NPCI circular states that all the members are supposed to make the necessary changes pertaining to limit increase immediately i.e., date of circular on Feb 27, 2025.

What is the other change that has been rolled out?

Issuer banks live on UPI LITE will identify all the UPI LITE accounts that have had zero transactions in the past six months. Any balances in these dormant LITE accounts will be refunded to the source bank account.

When will this other change being introduced?

The banks will implement the other changes by June 30, 2025.

What is UPI LITE?

It allows users to carry out PIN-less transactions under 1,000 and balance limit of ₹5,000 at any point of time. It was introduced as part of the framework issued by RBI for facilitating small value digital payments in offline mode on January 3, 2022 (updated on Aug 24, 2023).

Notably, NPCI, on Aug 27, introduced auto top-up on UPI Lite. The auto top-up allows balance to be reloaded by any amount chosen by the user, not exceeding UPI Lite balance limit, which was ₹2,000 now but now been raised to ₹5,000.

How do you send money via UPI Lite?

Sending money via UPI Lite is quite simple and straight forward. One has to just open the UPI Lite app, and opt to pay. Then, you can enter the amount that can be sent successfully without having to enter the UPI PIN.