Big Update for UPI Lite Users!

In a major development, UPI Lite users will now be able to withdraw their balance without disabling the service. The National Payments Corporation of India (NPCI) has directed all banks, payment service providers (PSPs), and UPI Lite-enabled apps to implement the ‘Transfer Out’ feature by March 31, 2025.

What’s Changing for UPI Lite Users?

📌 Earlier: Users could only add money to their UPI Lite wallet but could not withdraw or transfer it back to their bank. To retrieve funds, they had to disable UPI Lite, after which the remaining balance would be credited to their account.

📌 Now: The new ‘Transfer Out’ feature allows users to send their UPI Lite balance back to their linked bank account without disabling UPI Lite.

📌 Transaction Identification: NPCI has introduced ‘Purpose Code 46’ to track these withdrawals.

Additional Security & Updates in UPI Lite

✔ Balance Verification: Banks will now match the Lite Reference Number (LRN) balance with NPCI data for accuracy.

✔ Enhanced Security: UPI Lite apps will now require an app passcode, biometric authentication, or pattern lock to prevent unauthorized access.

✔ More Flexibility: Users can now manage their funds efficiently, transferring them back to their main UPI account whenever needed.

How to Activate UPI Lite?

1️⃣ Open your UPI app on your smartphone.
2️⃣ Select the ‘Enable UPI Lite’ option.
3️⃣ Accept the terms and conditions.
4️⃣ Enter the amount to add to your UPI Lite wallet.
5️⃣ Make payment from your linked bank account.
6️⃣ Authenticate with your UPI PIN.

Once activated, users can make small payments without entering a UPI PIN, making transactions faster and more convenient.

The introduction of the ‘Transfer Out’ feature makes UPI Lite even more user-friendly. With added security, flexibility, and convenience, users can now enjoy seamless small transactions while maintaining full control over their funds.

📢 Make sure to update your UPI app and start using the new feature before March 31, 2025! ✅