The National Payments Corporation of India (NPCI) has taken a major step by issuing new guidelines post which pre-approved credit lines can be connected to UPI. Get all details of the updated guidelines in our developing news story.
Overview
The Unified Payments Interface (UPI) remains at the forefront of India's constantly changing digital payments environment. And as per NPCI’s new guidelines, preapproved credit lines can now be linked to UPI accounts. This move will significantly improve financial inclusion, streamline borrowing, and increase access to formal credit.
Pre-Sanctioned Credit Lines Explained
Pre-sanctioned credit lines are pre-approved loan facilities provided by banks. Unlike traditional loans, customers can withdraw funds as needed and pay interest solely on the amount spent. This functionality enables smooth UPI transactions without a physical credit card, making short-term borrowing more accessible - especially for customers in smaller areas or without official credit records.