Now you will be able to make payment through your mobile phone even if there is no money in your account.
For this, the National Payment Corporation of India (NPCI) on Wednesday started the service ‘Credit Line on UPI‘ to link the credit line with the Unified Payment Interface (UPI).
Along with this, different payment modes have also been launched.
This includes ‘Hello UPI‘ for making voice payments and ‘UPI LiteX‘ for making offline payments through feature phones.
Apart from this, BillPay Connect and UPI Tap and Pay conversational payment services have also been started.
Infosys Chairman and NCPI Advisor Nandan Nilekani, RBI Governor Shaktikanta Das and NPCI Chairman Vishwamohan Mohapatra were present on the occasion.
NPCI’s target is to achieve 100 billion transactions every month through these different payment modes.
Also read- RBI Approved Loan Apps In India
What is Credit Line on UPI?
The Credit Line on UPI service was announced in April this year.
It is a kind of digital credit card, which works like a pre-approved loan.
In this, just like a credit card, a limit of amount will be given to the customer to spend.
For this, you will have to first apply in the bank. After getting approval from the bank, whether you have money in your account or not, you will be able to make payments through UPI.
Suppose you have approved for a credit line of Rs 25,000 approved by your bank. After this, you will be able to spend up to Rs 25,000 through UPI payment.
The amount you spend, the bank will charge you the same interest. It is currently live with some public sector and private sector banks.
Payment apps on which it is live include BHIM, Paytm, PayZapp and G Pay.
How will the customers benefit from the UPI Credit Line?
Customers will not have to carry separate cards. You will be able to pay through UPI from your mobile only.
Time will be saved.
It takes some time to get a credit card. The credit line will be available immediately after approval.
The point-of-purchase credit experience will become seamless. This can bring transformational growth in the BNPL sector.
UPI Journey
With the launch of UPI in 2016, there was a revolution in the world of digital payments. UPI gave the facility to transfer money directly to the bank account.
Earlier there was a trend of digital wallets. There is a hassle like KYC in the wallet, while nothing has to be done in UPI.
Penau is a payment system similar to UPI developed by the Association of Banks in Singapore.
The operation of RTGS and NEFT payment systems in India is with the RBI. National Payment Corporation of India (NPCI) operates systems like IMPS, RuPay, UPI.
Special things related to UPI
UPI system provides real-time fund transfers. Multiple bank accounts can be linked in one application.
To send money to someone, all you need is their mobile number, account number or UPI ID.
UPI has been developed on the model of IMPS. That’s why you can do 24×7 banking through the UPI app.
Online shopping with UPI does not require OTP, CVV code, card number, expiry date etc.
