RBI has approved Pre-Sanctioned Credit Lines for UPI system. Through this, UPI users will be able to make payments even without credit card even when there is no money in the account.
UPI New Service: The Reserve Bank of India ( RBI ) has approved a new facility for Unified Payments Interface (UPI) . Through which users will be able to do 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 only deposits were allowed on UPI, but now the facility of pre-approved loans will also be available.
The scope of UPI will increase
Explain that at present, credit cards, savings accounts and overdraft accounts can be linked on UPI. The Central Bank has proposed to operationalize “Pre -Approved Loan Service 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 from the pre-sanctioned 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 take advantage?
If seen, the new facility of UPI will work 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.
