RBI approves pre-sanctioned credit lines via UPI: Get easy access to loans; CHECK for details

The Reserve Bank of India has introduced a facility for obtaining credit through UPI. RBI has permitted small finance banks to use this facility to provide pre-approved loans.

This facility is said to be very useful for people in rural areas to get loans. The RBI also believes that it will be easy for small businesses, entrepreneurs, and individuals to get loans. This method is also expected to encourage a cashless economy.

Pre-approved credit lines on UPI will help in obtaining loans directly through UPI apps. This facility is also useful for integrating credit lines, overdrafts, and retail loans. This will ensure smooth and easy credit-related financial transactions.

It has not yet been announced how much loan can be availed using this facility. The Reserve Bank has said that guidelines for this service will be released soon. At that time, the limits and conditions for using this method may also be known.

Recently, the limit for a single transaction in UPI Lite service has been increased from Rs 500 to Rs 1,000. Similarly, the maximum balance limit in UPI Lite has been increased from Rs 2,000 to Rs 5,000.