UPI Lite Wallet Limit Increased to ₹5,000 by RBI

The Reserve Bank of India (RBI) has announced an increase in the UPI Lite wallet limit, raising it from ₹2,000 to ₹5,000. This change takes effect immediately. Additionally, the RBI has increased the per-transaction limit from ₹500 to ₹1,000.

This decision is part of RBI's efforts to encourage the adoption of instant digital payment methods. The update was discussed during the Monetary Policy Committee (MPC) meeting in October and has now been implemented.

What is UPI Lite?

UPI Lite enables users to make UPI payments without the need to enter a PIN for every transaction. Users need to load funds into their UPI Lite wallet from their bank account via UPI. Once the wallet is funded, payments can be made seamlessly, saving time and enhancing convenience.

For frequent UPI Lite users, this increased limit reduces the need for frequent wallet top-ups, offering a smoother experience for digital transactions.