The Reserve Bank on Monday mentioned the UPI System may even embrace pre-sanctioned credit lines issued by banks for transactions. Earlier, solely the deposited quantity could possibly be transacted through the UPI System.
In April, the RBI proposed to broaden the scope of the Unified Payments Interface (UPI) by enabling switch to/from pre-sanctioned credit lines at banks. Currently, financial savings accounts, overdraft accounts, pay as you go wallets and credit playing cards could be linked to UPI.
The scope of UPI is now being expanded by the inclusion of credit lines as a funding account, it mentioned in a round on ‘Operation of Pre-Sanctioned Credit Lines at Banks through UPI’. “Under this facility, payments through a pre-sanctioned credit line issued by a Scheduled Commercial Bank to individuals, with the prior consent of the individual customer, are enabled for transactions using the UPI System,” the RBI mentioned.
This can scale back the fee and assist in the event of distinctive merchandise for Indian markets. UPI, used for rapid cash switch through cellular units around the clock, transactions crossed the 10-billion-mark in August. The variety of UPI transactions in July was 9.96 billion (996.4 crore) and 9.33 billion in June.
ALSO READ |Â Small-cap IT inventory with multibagger returns since IPO itemizing extends rally after recent acquisitions
ALSO READ |Â G20 Presidency serving to India deepen commerce ties with member nations: Experts
