RBI launches automatic reload feature for UPI Lite wallet
The Reserve Bank of India (RBI) has introduced an automatic reload feature for the UPI Lite wallet under its e-mandate framework. Announced by RBI Governor Shaktikanta Das on Friday, this new facility will allow customers to automatically top up their UPI Lite wallet when the balance drops below a user-defined threshold. The auto-replenishment feature aims to eliminate manual reloading and ensure a seamless payment experience.
Enhancing UPI Lite Wallet's user experience
Das explained that the UPI Lite wallet currently allows customers to load up to ₹2,000 and make payments up to ₹500 per transaction. The introduction of the auto-replenishment feature is based on feedback from various stakeholders and aims to enable users to use UPI Lite seamlessly. As funds move directly from the user's bank account to the wallet, additional authentication or pre-debit notifications are not required, further simplifying transactions.
A move to boost small value digital payments
The automatic reload feature is expected to enhance the ease of making small value digital payments, according to Das. Guidelines regarding this new proposal are anticipated to be issued soon by the RBI. This decision was made amidst policy uncertainty following an unexpected election result that led Prime Minister Narendra Modi's party into a coalition government. Despite political changes, the RBI has maintained its benchmark interest rate at 6.5%, keeping its focus on inflation control.
