You can soon withdraw UPI Lite funds and transfer them to your bank account
All UPI apps with an active UPI Lite feature must implement an app passcode, biometrics, or a pattern-based lock during log in
 "You can soon withdraw UPI Lite funds and transfer them to your bank account")
The National Payments Corporation of India (NPCI) has asked issuer banks, payment service provider (PSP) banks, and platforms offering UPI Lite to enable and activate the so-called transfer out feature by March 31.
UPI Lite works one-way, meaning it allows users to add funds to their wallets but not withdraw them. To access their balance, users must disable their UPI Lite account. As stated on NPCI’s website, “Upon clicking the disable button on UPI Lite, the balance funds available with the bank in the Lite account shall be released to the customer’s account.”
What is UPI Lite
UPI Lite allows users to make low-value transactions without using a UPI PIN. The payment service leverages the NPCI Common Library (CL) application to process low value transactions that have been set at below Rs 500.
Key updates in UPI LITE
Introduction of 'transfer out' functionality: Users will now have the ability to withdraw funds from their UPI LITE balance and transfer them back to the source bank account without disabling UPI LITE.
Enhanced reconciliation mechanism: All Issuer Banks operating on UPI LITE must maintain Lite Reference Number (LRN) level balances and ensure daily reconciliation with NPCI data. This step aims to keep accurate transaction records and seamless financial operations.
Strengthened security measures: UPI apps with active UPI LITE will now be required to have an app passcode, biometric authentication, or a pattern-based lock at the time of login. This move is expected to enhance user security and prevent unauthorized access.
Compliance deadline
NPCI has instructed all stakeholders to implement these changes by the end of March 2025, ensuring seamless adoption across the UPI ecosystem. The existing guidelines for UPI LITE will remain unchanged apart from the newly introduced modifications.
How to enable UPI LITE
Launch the UPI app on your mobile device.
On the home screen, look for the option to enable UPI LITE and tap on it.
Carefully read and accept the terms & conditions to proceed.
Enter the amount you wish to add to UPI LITE.
Choose the linked bank account for the transaction.
Authenticate the setup by entering your UPI PIN.
Once the process is completed, UPI LITE will be successfully activated, allowing seamless low-value transactions without the need for a UPI PIN.