The National Payments Corporation of India (NPCI) has introduced a new change for UPI Lite, set to take effect on April 1, 2025. Through a recent circular, NPCI has instructed all banks to incorporate the “Transfer Out” feature, enhancing the functionality of this app. This latest rule is to enhance user convenience, read NPCI’s circular.
The new “Transfer Out” feature will let users easily withdraw funds from their UPI Lite balance back to the original bank account, without disabling the app.
Additionally, the NPCI has introduced a new requirement for all banks offering UPI Lite that they must keep track of Lite Reference Numbers (LRNs) and ensure daily checks to reconcile these balances with NPCI’s data. This will help ensure that the LRN balances are always in sync with NPCI’s records, making the system more reliable and transparent for users.
Meanwhile, NPCI’s circular further said that UPI app with active UPI Lite will have app passcode, biometrics or pattern-based lock at the time of app login and these changes will be introduced by March 31, 2025. However, all the other rules for the app will remain same.
UPI Lite: What It Is?
UPI Lite allows users to make PIN-less transactions under Rs 500. The app also offers a user-friendly experience, processing low-value transactions without relying on the sender’s bank’s core system in real-time. It is worth noting that this app is a customer-friendly app which enables low value transactions without utilising a remitter bank’s core banking systems in real-time.
Moreover, key benefits include a clutter-free passbook, single-click two-factor authentication for transactions under Rs 500, and more. Current wallet limit of the app is Rs 5,000, and per transaction limit is Rs 500.
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