While the digital banking service in India is improving day by day, the central finance ministry and the Reserve Bank are working with the important goal of providing financing and financial services to people in all categories and channels. At this stage a new service has been introduced under UPI.
For this, RBI is providing new services to the people through UPI, which is the most successful platform among the people of India. In this situation, till date people were making payments with the money in the account linked to their bank account and getting goods and services on the UPI service platform.
A few months ago, RBI introduced a service where people can link their credit cards to UPI accounts and make payments. With this, even if you don’t have money in your bank account, you can pay through a credit card through UPI, which helps a lot of people who struggle at the end of the month.
In the next phase, RBI Governor Shaktikanta Das said at the Reserve Bank’s monetary policy meeting today that as part of an effort to take the use of the UPI service platform to the next level, a customer will now be able to avail pre-approved loans from the bank through UPI.
It means that a bank provides lending services to its account holders in several ways. Important among these are these pre-sanctioned credit lines, in which permission has been given to use the sanctioned loan amount through UPI, and banks have also been given permission to implement this.
Speaking at a press conference after the monetary policy meeting, the top RBI officials were asked if this UPI – pre sanctioned credit lines link is a way to expand the BNPL scheme, it has nothing to do with the BNPL scheme. It is not private financial services companies that provide loans, but private and public sector banks. This has nothing to do with the BNPL project.