UPI Lite: Now UPI Lite users will not need to disable it to withdraw their balance. In a new circular, the National Payments Corporation of India (NPCI) has directed banks, payment service providers (PSPs) and UPI Lite-enabled apps to implement the ‘transfer out’ feature by March 31, 2025.
What will change for UPI Lite users?a
Till now, UPI Lite wallet only had the facility to add money, but there was no option to withdraw or transfer it back to the bank. To use the balance, users had to first disable UPI Lite, after which their remaining balance would be returned to the bank account.
Now with the new ‘Transfer Out’ feature, users will be able to withdraw their balance and transfer it back to their linked bank account without disabling UPI Lite. NPCI has set ‘Purpose Code 46’ to identify this transaction.
These will be the new updates in UPI Lite
Now the bank will have to match the Lite Reference Number (LRN) balance with the NPCI data. It will now be more secure than before as apps using UPI Lite will now require an app passcode, biometric authentication or pattern lock to prevent unauthorized access.
How to activate UPI Lite?
Open the UPI app on your smartphone.
Choose the option to enable UPI Lite.
Accept the terms and conditions.
Enter the amount to add to wallet.
Make payment from linked bank account.
Authenticate by entering UPI PIN.
After activation, users will be able to make payments of small amounts without entering the UPI PIN. This feature will give users more flexibility and control. They will be able to transfer money to their main UPI account or any other linked bank account whenever needed. This will simplify small and frequent transactions and make UPI Lite more convenient.
