New UPI rules starting November 1: Google Pay, PhonePe, Amazon Pay and other app users take note

Two new changes have come to UPI starting November 1. The National Payments Corporation of India (NPCI) has introduced an auto top-up feature and increased transaction limits for UPI Lite, effective November 1, 2024, to streamline small-value digital payments.

New transaction limit and more

Under these new guidelines, users can now make transactions up to Rs 1,000 without entering a PIN, doubled from the previous limit of Rs 500. The maximum wallet balance limit has also been increased from Rs 2,000 to Rs 5,000, though the daily transaction cap remains at Rs 4,000.

What is the auto top-up feature in UPI

The auto top-up feature automatically recharges a user’s UPI Lite account when the balance falls below a predetermined threshold. Users can set their preferred top-up amount through their UPI app, with a limit of five automatic recharges per day.
“This will support quick, PIN-less payments below Rs 500,” said a statement from NPCI, which introduced the auto top-up functionality on August 27, 2024.
To use the auto top-up feature, users need to set up a mandate through their UPI app, authorising automatic fund transfers from their bank account to their UPI Lite wallet. Users retain control with the option to cancel the mandate at any time.
These enhancements will make UPI Lite more convenient for daily small-value transactions while maintaining security through transaction limits and controlled usage.
In October 2024, NPCI recorded 16.58 billion UPI transactions totaling Rs 23.5 trillion. This marks a 10% increase in volume and 14% increase in value compared to September, driven primarily by person-to-merchant transactions during the festive season.