UPI Lite: Good news for UPI Lite users, they will be able to transfer money to the source bank account from April 1..

If you use the UPI system to make payments, then this news is of use to you. At present, UPI Lite users do not get the facility to directly withdraw the remaining balance in the UPI Lite account/wallet, but this facility is going to start on April 1. The National Payments Corporation of India (NPCI) has issued a circular in this regard. Through the circular, NPCI has directed all banks to implement the 'transfer out' functionality.

What is Transfer Out Functionality?

This is a new feature that will allow users to send money from their UPI Lite balance to the source bank account from which it was loaded. UPI Lite will not have to be disabled for this. The NPCI circular also states that this new rule of 'transfer out' is aimed at increasing the convenience of users.

UPI Lite has to be disabled for now
UPI Lite currently allows users to do a one-way transfer i.e. you can add money from your bank account to the UPI Lite wallet, but cannot transfer it back from the wallet to the source bank account. If you want the balance of your UPI Lite wallet in your bank account, then you will have to deactivate your UPI Lite account.

What is UPI Lite?

Let us tell you that UPI Lite is a payment solution that allows users to make transactions of less than Rs 500 without a UPI PIN. In October last year, RBI increased the limit of UPI Lite wallet from Rs 2,000 to Rs 5,000. The limit of UPI Lite per transaction was also increased from Rs 100 to Rs 500.

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