Big Update for UPI Lite Users: Withdraw Balance Without Disabling the Service
UPI Lite users can now enjoy more flexibility with their funds. In a significant update, the National Payments Corporation of India (NPCI) has mandated all banks, payment service providers (PSPs), and UPI Lite-enabled apps to introduce the “Transfer Out” feature by March 31, 2025. This means users will no longer need to disable UPI Lite to withdraw their balance.
What’s Changing for UPI Lite Users?
Previously, users could only add money to their UPI Lite wallet but had no option to transfer it back to their bank account. If they wanted to retrieve their funds, they had to disable UPI Lite, after which the remaining balance was automatically credited to their account.
With the new “Transfer Out” feature, users can now send their UPI Lite balance back to their linked bank account without disabling the service. To facilitate this, NPCI has introduced “Purpose Code 46” to track these transactions efficiently.
Additional Security and Updates in UPI Lite
To enhance user experience and security, NPCI has implemented several improvements:
- Balance Verification: Banks will now match the Lite Reference Number (LRN) balance with NPCI data to ensure accuracy.
- Enhanced Security: UPI Lite apps will require an app passcode, biometric authentication, or pattern lock to prevent unauthorized access.
- More Flexibility: Users can manage their funds efficiently and transfer their balance back to their main UPI account whenever needed.
How to Activate UPI Lite
Activating UPI Lite is a simple process:
- Open your UPI app on your smartphone.
- Select the “Enable UPI Lite” option.
- Accept the terms and conditions.
- Enter the amount you want to add to your UPI Lite wallet.
- Make the payment from your linked bank account.
- Authenticate the transaction with your UPI PIN.
Once activated, UPI Lite allows users to make small payments without entering a UPI PIN, making transactions faster and more seamless.
Stay Updated and Enjoy the Benefits
With the introduction of the “Transfer Out” feature, UPI Lite has become more user-friendly, secure, and convenient. Users now have full control over their funds while continuing to enjoy quick and hassle-free small transactions.
Ensure your UPI app is updated to access this new feature before March 31, 2025.
