The Reserve Bank unveiled a proposal on Friday for a new facility designed to facilitate automatic replenishment of UPI Lite wallets, aiming to boost small-value digital transactions. UPI Lite, a simplified version of the Unified Payments Interface (UPI), serves as an on-device wallet for swift small-value transactions.
As it stands, UPI Lite imposes a daily cap of Rs 2,000, with a maximum limit of Rs 500 per single payment. Currently, the UPI Lite app can only hold up to Rs 2000 at a time.
RBI Governor Shaktikanta Das announced the proposal, stating, "To foster broader adoption of UPI Lite, we are considering integrating it into the e-mandate framework. This would introduce a feature enabling customers to automatically top-up their UPI Lite wallets when their balance falls below a pre-set threshold."
This initiative, he noted, is expected to streamline the process of conducting small-value digital transactions. The concept of UPI Lite was introduced in September 2022 to facilitate quick and seamless small-value payments through an on-device wallet.
Furthermore, Das highlighted the growing acceptance of e-mandates for recurring payment transactions. As part of the proposal, payments such as Fastag and National Common Mobility Card (NCMC) replenishments, which occur periodically but without a fixed frequency, will be included in the e-mandate framework.
"This move will allow customers to automatically top-up their Fastag, NCMC, etc. balances if they dip below the specified threshold. Such convenience enhancements will significantly ease travel and mobility-related payments," Das added.
