NPCI (National Payments Corporation of India) has provided a big relief to UPI Lite users. Soon, you will be able to withdraw the balance stored in your UPI Lite account. In a circular dated February 21, 2025, NPCI instructed all payment service provider (PSP) banks and apps where UPI Lite is live to activate the “Transfer Out” feature by March 31, 2025. Once this feature is activated, users will be able to withdraw funds from their UPI Lite balance to their linked bank account.

No Withdrawal Facility Yet

Currently, UPI Lite users can only load money into their UPI Lite wallet, but they do not have the option to withdraw funds. If someone wants to withdraw the balance from their UPI Lite account, they must disable their UPI Lite account. According to the NPCI website, “When the disable button on UPI Lite is clicked, the balance in the Lite account will be released to the customer’s account.”

No Internet Connection Required

UPI Lite is designed for fast and easy payments with low, offline balances, and does not require a stable internet connection to complete transactions. It is primarily used for small-value transactions, with a per-transaction limit of ₹500 and a daily limit of ₹4,000. The maximum balance allowed in a UPI Lite account at any time is ₹2,000. Small payments (between ₹200-₹500) do not require entering a UPI PIN.

How to Enable UPI Lite

  • Open the UPI app on your mobile device.
  • On the home screen, find and tap on the option to enable UPI Lite.
  • Read and accept the terms & conditions to proceed.
  • Enter the amount you want to add to UPI Lite.
  • Select the linked bank account for the transaction.
  • Authenticate the setup by entering your UPI PIN.
  • Once completed, UPI Lite will be activated, allowing you to make small transactions without entering a UPI PIN.