UPI Now, Pay Later: RBI recently enabled transfers from pre-approved credit lines in banks through the UPI network. “Under this facility, payments through pre-approved credit lines issued to individuals by a scheduled commercial bank, with the prior consent of the individual customer, are made using the UPI system,” the RBI said in a notification issued in September 2023. Is enabled for.
UPI Now, Pay Later : Do you know that even if you do not have enough money in your bank account, you can still make payments through your Unified Payments Interface (UPI) application? The Reserve Bank of India (RBI) has now allowed banks to provide credit line facility to UPI users. You can spend money from a pre-approved credit line and return the money to the bank later. How does this work? let’s watch.
RBI has recently enabled transfers from pre-approved credit lines in banks through the UPI network. “Under this facility, payments through pre-approved credit lines issued to individuals by a scheduled commercial bank, with the prior consent of the individual customer, are made using the UPI system,” the RBI said in a notification issued in September 2023. Is enabled for.
Use UPI pay later: What changed for the user?
Till now, individuals could only link their savings accounts, overdraft accounts, prepaid wallets and credit cards to the UPI system. But now, you can also use your pre-approved credit line to make UPI transactions. Let us explain how it works.
What is pre-approved credit line for UPI users?
Pre-approved credit is nothing but an overdraft facility provided by banks. According to bank websites, this facility can be used through UPI applications like Google Pay, Paytm, MobiKwik and mobile banking UPI applications.
First, the bank will take your consent to set-up the credit line. There will be a set limit. Once it is approved, you can spend that pre-approved amount through the UPI app and later repay your dues by the due date.
Some banks charge interest on the amount used from the credit line, while some offer a credit-free period, which means that if the amount used is repaid within a predetermined time period then no interest is charged on it. Not there.
