Comments
Scheduled Commercial Banks (SCBs) can now enable payments through a pre-sanctioned credit line for individuals, with prior customer consent, for transactions using the UPI (unified payments interface) system, according to the RBI. With this, the scope of UPI has been expanded by inclusion of credit lines as a funding account, the central bank said in a circular to SCBs (excluding Payment Banks, Small Finance Banks and Regional Rural Banks).
The central bank, in its statement on development and regulatory policies (April 06,2023), said it will expand the scope of UPI by enabling transfer to / from pre-sanctioned credit lines at banks. At present, savings account, overdraft account, prepaid wallets and credit cards can be linked to UPI.
Banks may, according to their Board-approved policy, stipulate terms and conditions of use of such credit lines. The terms may include, among other items, credit limit, period of credit, and rate of interest.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.