Wednesday, June 12, 2024

Explained: RBI announces UPI Lite E-mandate, what it is and more – Times of India

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The Reserve Bank of India (RBI) recently announced a new feature for UPI Lite, a simplified version of the Unified Payments Interface (UPI) designed for small-value transactions. This feature is called UPI Lite E-mandate, and it’s designed to make topping up your UPI Lite balance a breeze.
What is UPI Lite?
Before diving into E-mandate, let’s understand UPI Lite.It’s a digital wallet within your UPI app specifically for quick and easy low-value payments. Here’s what makes it distinct:
* Transaction limit: Transactions are capped at Rs. 500.
* No PIN required: Payments are authorized without entering a PIN for transactions under Rs. 200 (subject to your bank’s policy).
* Faster transactions: Transactions are processed on-device, making them quicker than traditional UPI payments.
How Does UPI Lite E-mandate work?
Here’s where the magic happens:
1. Set a Threshold: You choose a minimum balance you want to maintain in your UPI Lite wallet.
2. Activate E-mandate: Link your linked bank account to UPI Lite E-mandate.
3. Auto Top-up: Whenever your UPI Lite balance dips below your set threshold, funds will be automatically transferred from your linked bank account to your UPI Lite wallet, ensuring you never run out of funds for those quick, everyday purchases.
Benefits of UPI Lite E-mandate:
* No more manually reloading your UPI Lite wallet. Set it and forget it.
* Always have enough balance for small purchases without worrying about topping up constantly.
* Avoid interruptions during your shopping sprees by ensuring a smooth flow of funds.
Some things to remember:
UPI Lite E-mandate is a relatively new feature, so its availability might vary depending on your UPI app provider.
It’s crucial to choose a safe and secure UPI app and set a strong threshold to avoid overspending.

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