UPI Now, Pay Later: There is no money in the account, still online payment will be done, know how to use it
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UPI Now, Pay Later: Do you use UPI? So this is useful news for you. Now, even if there is no money in your account, you will be able to make your payment through UPI. For this, permission has been given by the Reserve Bank of India. Now UPI customers will be able to spend money on credit from UPI up to the pre-determined limit. Any UPI platform allows its users to create a credit line (Credit Line) facility will be able to offer. This will work fine under credit card. But, its limit will be less and limited than that of credit card. Let us know what has changed in UPI and how you can use this option.
What changed in UPI platform?
Users are going to get a big change after RBI approved linking UPI with pre-approved loan facility. Earlier, users could use their UPI by linking it to savings account, overdraft account, prepaid wallet and credit card. But, now UPI users will also be able to do UPI transactions using the pre-approved credit line provided by the UPI service providing company. This offer has been started by the bank to motivate people to use UPI and to make its use more simple and accessible. Before now, you used to use only as much money as was in your account or wallet.
What did RBI approve?
The Reserve Bank of India (RBI) also announced the inclusion of pre-approved loan facility issued by banks for transactions in the UPI system. This announcement was made on 4 September. Till now only deposit amount transactions could be done through UPI system. Earlier in April, the central bank had proposed to increase the scope of Unified Payments Interface (UPI). Under this, it was said that approval for transfer/transfer from already approved loan facility in banks was given. At present, savings accounts, overdraft accounts, prepaid wallets and credit cards can be linked to UPI. Issuing a circular on ‘Operation of Pre-Approved Loan Facility in Banks through UPI’, the Reserve Bank said that now the loan facility has also been included in the scope of UPI. Giving information about this, it was said by the Reserve Bank that under this facility, payment can be made through pre-approved loan facility issued to individuals by a scheduled commercial bank with the prior consent of the individual customer. According to the central bank, this can reduce costs and help in the development of unique products for the Indian markets. Transactions through UPI, used for instant money transfers around the clock through mobile devices, crossed the 10 billion mark in August. The figure of UPI transactions in July was 9.96 billion.
What is a pre-approved credit line?
Pre-approved credit line is a type of overdraft facility through UPI. You can use it on Google Pay, Paytm, Mobiqui or any other UPI service provider’s app. However, to avail this facility, users will have to take permission from their UPI service provider to activate the facility. The service provider will approve the credit line based on its limit or your banking history. After this, you can use the credit line. For this, the service provider may charge you some fee at the border. Whereas, some banks may give you a few days’ time to repay the money. This is just like Buy Now Pay Later option. However, some banks may also charge you a one-time processing fee for approving the credit line.
What is boy now pay later
Through “Buy Now Pay Later” individuals can easily purchase products from various businesses or e-commerce platforms and promise to repay the same later within a specific period of time. Its main objective is to give customers the opportunity to purchase products or services easily and they do not need other payment options like loan or credit card. In this way, customers can easily buy their favorite products and pay for it while adhering to the payment deadline and discipline. It is a popular financial service that allows consumers to purchase products without having to spend money immediately. Please note that the “Buy Now Pay Later” option may be offered by different businesses and banks, and its features and terms may also vary across institutions. You are advised to contact specialized institutions or e-commerce portals for more information about Buy Now Pay Later option for your purchases.
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