UPI new rule: The trend of digital payment is increasing rapidly in India. The role of Unified Payments Interface (UPI) is most important in this. UPI has made it very easy for people to send and receive money. Now you can send money anytime, anywhere from your mobile phone. But now some rules related to UPI have changed. These new rules have come into effect from 1 November 2024.
These new rules include many changes related to UPI Lite. UPI Lite is a feature that is designed for small transactions. This makes it easier to transact small amounts. Under the new rules, the limit of UPI Lite has been increased and some new features have also been added to it. The purpose of these changes is to make the use of UPI even easier and convenient.
What is UPI and how does it work?
UPI i.e. Unified Payments Interface is a system that connects multiple bank accounts to one mobile app. With this you can send and ask for money from your phone itself. For UPI you just need a VPA (Virtual Payment Address). This can be your mobile number or email ID. With UPI you can transfer money 24 hours a day, seven days a week.
Benefits of UPI:
- instant money transfer
- no extra charge
- secure transaction
- Facility to manage multiple bank accounts simultaneously
- Easy payment through QR code
UPI new rules: at a glance
| Speciality | new rule |
| UPI Lite Transaction Limit | Rs 1000 (earlier it was Rs 500) |
| UPI Lite Wallet Balance | Rs 5000 (earlier it was Rs 2000) |
| Auto-top-up feature | New feature added |
| daily transaction limit | 4000 rupees |
| effective date | 1 November 2024 |
| Use of UPI Lite | for small transactions |
What is UPI Lite?
UPI Lite is a special version of UPI designed for small transactions. In this you do not need to enter UPI PIN every time. This makes it even easier to make small payments. In UPI Lite, you can keep money in a wallet and then use it.
New rules of UPI Lite
1. Transaction limit increased
Earlier with UPI Lite you could transact only up to Rs 500 at a time. Now this limit has been increased to Rs 1000. With this you will be able to transfer more money at one time.
2. Increase in wallet balance
Earlier you could keep only Rs 2000 in UPI Lite wallet. Under the new rule, now you can keep up to Rs 5000 in it. With this, you will not need to put money in the wallet again and again.
3. Auto-top-up feature
This is a new feature that has been added to UPI Lite. Under this, when your wallet balance decreases, it will be filled automatically. You can set a limit for this.
4. Daily Transaction Limit
With UPI Lite, you can do a maximum transaction of Rs 4000 in a day. This limit was already there and still remains intact.
Benefit of new rules
- More convenience: With the increased limit, you will now be able to transfer more money at one time. With this, there will be no need to do small transactions again and again.
- Less hassle: With the auto-top-up feature, you don’t have to worry about adding money to the wallet again and again. This will happen automatically.
- Faster Transactions: Small transactions are much faster with UPI Lite. Now with the higher limit it has become even more useful.
- Security: You keep a limited amount in UPI Lite. This will reduce your loss even in case of any disturbance.
How to use UPI Lite?
- Go to your UPI app (like BHIM, PhonePe, Google Pay)
- Select UPI Lite option
- Select your bank account
- Add money to UPI Lite wallet
- now you can use it
How to set up the auto-top-up feature?
- Go to UPI Lite section in UPI app
- Select auto-top-up option
- Set the amount of your choice (eg Rs 1000)
- Set a minimum balance (e.g. Rs 200)
- Select the bank account of your choice
Now when your UPI Lite balance is less than Rs 200, it will automatically be topped up by Rs 1000.
Benefits of UPI Lite
- Faster Transactions: No need to enter UPI PIN, hence transactions are faster.
- Works offline: Can be used even when there is no internet.
- Safe: There is not much risk due to limited amount.
- Ease of Use: Very convenient for small transactions.
Disadvantages of UPI Lite
- Limited Use: Cannot be used for large transactions.
- Not available in all banks: Not all banks support it yet.
- Extra Step: First you have to add money to the wallet.
What is the difference between UPI and UPI Lite?
| feature | is i | UPI Lite |
| transaction limit | More (depending on the bank) | Rs 1000 per transaction |
| PIN required | on every transaction | does not fall |
| Internet | is necessary | Works offline too |
| balance | directly from bank account | Have to keep in wallet |
| Use | all types of transactions | for small transactions |
What other changes can happen in the future of UPI?
- Credit Card Linking: The convenience of linking credit cards to UPI can increase.
- International Payments: UPI can be used in other countries also.
- AI Integration: Artificial Intelligence can make UPI smarter.
- Biometric Verification: Payment can be done through fingerprint or face recognition.
- Blockchain Technology: This can make UPI even more secure.
What precautions should be taken while using UPI?
- Do not share your UPI PIN with anyone.
- Do not click on unknown links.
- Do not use UPI on public Wi-Fi.
- Keep a good antivirus app in your phone.
- Keep installing regular updates.
- Do not do UPI transactions with the help of any stranger.
- Keep your UPI app password strong.
Disclaimer: This article has been written for information purposes only. The rules of UPI and UPI Lite may change from time to time. Please check the official website of your bank or NPCI for accurate and up-to-date information. The information given in the article is correct to the best of the author’s understanding, but its 100% accuracy cannot be guaranteed. Please seek expert advice before taking any financial decisions.
