Good news for UPI users! You can now make payments through UPI even when your bank account is running low on funds.
The Reserve Bank of India (RBI) has given the green light to the ‘UPI Credit Line Service,’ allowing users to make instant UPI payments, even with empty bank accounts.
Expanded Details
Previously, UPI users could link their savings accounts, overdraft accounts, prepaid wallets, and credit cards to their UPI accounts. However, now they can also tap into a credit line for UPI payments.
How It Works
To access this service, banks need customer approval for a credit line. Once approved, a credit limit is set.
When you need to make a payment, you can use this approved credit limit. After the payment, you’ll have some time to repay the borrowed amount,
and no extra charges will apply during this period. RBI has instructed all banks to integrate this feature with UPI.
Determining the Credit Line
The credit line limit will be determined by the banks, taking into account factors such as the customer’s payment history and credit history.
Users can avail this facility through popular UPI apps like Google Pay, Paytm, Mobikwik, Phone Pay, and others.
Rising Popularity of UPI
The popularity of UPI is on the rise, with UPI scanners now available in small shops, street vendors, and even vegetable markets across the country.
India’s UPI system is gaining recognition not just domestically but also internationally. In response to its growing popularity, new features are continuously being added to enhance the UPI experience.
The ‘UPI Now, Pay Later’ feature, enabled by the credit line limit, is set to provide significant benefits to users.
