The National Payments Corporation of India (NPCI) has made a major announcement for UPI LITE users. Now users will not need to disable it to remove UPI Lite balance. NPCI has directed all banks, payment service providers (PSP) and UPI Lite-enabled apps to implement the ‘transfer out’ features by 31 March 2025.

Will UPi Lite change for users?

Till now the UPI Lite Wallet had the option to add only balance, but there was no facility to withdraw the balance or transfer to the bank account. If a user had to remove his UPI Lite balance, he had to first disable the UPI Lite completely. Only then did the remaining balance bank return to the bank account.

Now what will happen with the new ‘transfer out’ feature?

NPCI has decided to implement the ‘transfer out’ feature, so that UPI LETE users will now be able to transfer their balance to their linked bank account without disabled it. To identify this transaction, NPCI has set ‘Purpose Code 46’, so that banks will be able to track this process easily.

These will be new updates in UPI Lite

NPCI has also made some important changes to make this facility more secure and better:

1. Balance will be matched with NPCI data

• The bank will now have to match the balance with NPCI’s Lite Reference Number (LRN) data.
• This will cause correct tracking of the balance and will reduce the chances of any disturbance.

2. There will be more security features

• The app passcode, biometric authentication or pattern lock will now be made mandatory in UPI Lite enabled apps.
• This will help prevent unauthorized access and ensure safety of users’ money.

How to do UPI Lite Activate?

If you want to use UPI Lite, then follow the steps given below:

1. Open the UPI app on your smartphone.
2. Choose the option to enable UPI Lite.
3. Accept the conditions and terms.
4. Enter the amount to add to the wallet.
5. Pay on linked bank account.
6. Put the UPI PIN and authenticate.

Why is UPI Lite beneficial?

• There will be no need to enter UPI PIN for small amount payments.
• Fast transaction-great option for repeated payment.
• Balance add and transfer facility without directly using the bank account.
• Now it is easy to remove the balance, the hassle to disable UPI Lite is over.