Loan money from banks will come to your account through UPI, RBI took this step

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UPI RBI Bank Loan: The Reserve Bank of India has decided to increase the scope of UPI (Unified Payment Interface). Under this, loan facility already approved from banks will be linked to UPI. UPI is a popular and strong payment platform in the country. It currently has a 75 per cent share in retail digital payments in the country by volume.

Reserve Bank Governor Shaktikanta Das said that the UPI system has been used to develop products and features in line with the payment digitization goals in the country. It is now proposed to expand the scope of UPI by enabling transfers from pre-approved loan facilities in banks, in addition to deposit accounts, he said.

In other words, the UPI network will facilitate the payment of amounts through pre-approved credit facilities from banks. This can reduce the cost of such an offering and help in the development of unique products for the domestic market. Das said that this is related to the loan already sanctioned. This means that the loan facility sanctioned by the bank and the customer can now be operated through UPI.

At present, the transactions through UPI are done between the deposit accounts in the banks. In some cases it is also used through pre-paid cards including wallets. The central bank will soon issue detailed instructions in this regard. Recently permission was given to link Rupay credit card with UPI. In this regard, Indian Banks’ Association (IBA) President AK Goyal said that the purpose of expanding the scope of UPI by including pre-approved loan facility in banks is to increase access to institutional credit.

Anand Kumar Bajaj, Founder, Managing Director and Chief Executive Officer, PayNearby, said that the decision to expand the scope of UPI by allowing pre-approved loan facilities in banks through UPI is a positive step. This will make it easier for customers to access credit facilities, which will accelerate the acceptance of digital banking in the country. (with language input)

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