To make digital payments more seamless, the National Payments Corporation of India (NPCI) has introduced an auto top-up feature for UPI Lite. This feature allows users to set an automatic recharge for their UPI Lite wallet once the balance falls below a predefined threshold. Users can specify both the recharge amount and limit recharges to five times daily, ensuring continuous access to fast, low-value payments.

How It Works
Launched initially on August 27, 2024, the auto top-up feature enables users to set a mandate through their UPI app. This mandate authorizes automatic transfers from their bank to the UPI Lite wallet as per the set criteria. For added flexibility, users have the option to cancel this mandate at any time.

Transaction and Wallet Limits
With the new guidelines, UPI Lite transactions up to ₹1,000 can be processed without a PIN—doubling the previous limit of ₹500. Additionally, the maximum balance limit for UPI Lite wallets has increased to ₹5,000 from the earlier limit of ₹2,000, while the daily transaction cap remains at ₹4,000. These adjustments aim to streamline small-value transactions, allowing users to make everyday purchases with even greater ease and speed.

Growth in UPI Transactions
In the previous month, NPCI recorded 16.58 billion UPI transactions totaling ₹23.5 trillion—a 10% increase in transaction volume and a 14% rise in transaction value. This growth was largely driven by a surge in person-to-merchant transactions during the festive season, underscoring the importance of recent updates to UPI Lite.

These enhancements are designed to improve user convenience for small-value transactions while maintaining security through controlled transaction limits.