Now you will get a credit line through UPI. Your payment will not stop even if there is no money in the account. You will get a facility like a credit card through UPI. Now you can pay the bill after making payments for the whole month. Currently, the facility will be available to customers of Axis Bank, HDFC Bank, ICICI Bank, Indian Bank and PNB. It will be expanded later.
Credit Card UPI Update: Now whether you have money in your pocket or not, you can still spend freely. Yes, now your UPI will work exactly like a credit card. This means that UPI’s credit line is coming. Right now, this facility will be available to customers of Axis Bank, HDFC Bank, ICICI Bank, Indian Bank and PNB. Later it will be expanded. What are its benefits and how to get its benefit, this is being told in CNBC-Awaaz’s special show Consumer Adda.
UPI – Credit line is coming
RBI has approved giving credit line through UPI. NPCI has introduced a new system through UPI. Due to this, UPI will now work like a credit card. Loan up to a fixed limit can be taken in the credit line. Under this, interest will be charged only on the amount you spend. It has to be paid at a fixed time. There will be no extra fee for using the credit line. Right now it can be used only for shopping. This is a new feature of UPI. There will be no need to follow any new process in this.
What is UPI’s credit line facility?
UPI’s credit line facility is a facility similar to pre-approved loan. In this, customer’s UPI accounts are linked to bank accounts. Credit line is given on the basis of CIBIL score. It will have an amount limit just like a credit card. You will have to apply in the bank for credit line. After getting approval, payment will be received through UPI. Under this facility, you will be able to make payment even if there is no money in the account.
How will the customer benefit?
The biggest advantage of this facility is that the customer will not have to keep separate cards. Customers will be able to make payments through UPI. It takes some time to make a credit card. However, it can be used immediately after credit line approval.
UPI: Easy way of payment
UPI was started 8 years ago. The UPI system transfers funds in real time. This is an easy way to pay money directly from the bank account. There will be no need for a debit card for payment.
