RBI has approved Pre-Sanctioned Credit Lines for UPI system. Through this, UPI users will be able to make payments without credit card even if there is no money in the account.
UPI New Service: Reserve Bank of India (RBI) has approved the new facility for Unified Payments Interface (UPI). Through which users will be able to make transactions even if there is no money in the account. Actually, RBI has given green signal to the proposal to include Pre-Sanctioned Credit Lines in the UPI system. Till now, transactions were allowed only through deposited amount on UPI, but now the facility of pre-approved loan will also be available.
UPI scope will increase
Let us tell you that currently credit cards, savings accounts and overdraft accounts can be added on UPI. The Central Bank has proposed to operationalize “Pre-Approved Loan Facility in Banks through UPI”. The main objective of this decision of RBI is to increase the scope of UPI.
What did RBI say?
RBI says that under this facility, payment will be allowed through pre-approval loan facility from the scheduled commercial bank with the prior consent of the individual customer. This will reduce costs and new products will also be created.
How to avail benefits?
If seen, the new facility of UPI will work just like a credit card. However, transactions can be done without the card. To avail the service one has to apply. The approved loan will be approved only after checking the financial records.
