Big news for UPI user’s. UPI Lite is super popular in India, with millions of users taking advantage of it. It lets people make small payments without needing a UPI PIN. To make things even easier, the National Payments Corporation of India has updated the rules for UPI Lite.
Starting April 1, 2025, users will be able to withdraw money from their UPI Lite Wallet and send it back to their bank. Right now, you can only move money from your bank to the UPI Lite wallet, but you can’t send it back without deactivating your account.
So, how does this help users?
At the moment, UPI Lite users can only transfer funds one way—from their bank to the wallet. They have to deactivate their account to get money back to their bank. But with the new transfer out rule, users will easily be able to send money back to their bank account with just a click.
The NPCI has sent out a notice about this “Transfer Out” feature. All banks and payment platforms that support UPI Lite need to get this set up by March 31, 2025.
In December, RBI changed the rules of UPI Lite
In December 2024 also, RBI had changed the rules related to UPI. Wallet and transaction limits were increased. The announcement to increase the wallet capacity from Rs 2000 to Rs 5000 was made by the Reserve Bank of India. At the same time, the per transaction limit was increased from Rs 500 to Rs 1000.
