RBI Policy: Taking an important step, the Reserve Bank of India has allowed Small Finance Banks (SFBs) to provide credit lines to their customers. This decision will provide easy and affordable loans to underprivileged sections including small businesses, micro-entrepreneurs, and individuals in rural and semi-urban areas. Pre-approved credit line on UPI is a financial product designed to increase access to loansforo common people. This product allows individuals and small businesses to obtain pre-approved credit lines from banks, which can be used instantly for transactions through the Unified Payments Interface (UPI).

UPI Credit Line is a pre-approved credit limit linked to the user's Unified Payments Interface (UPI) account. This facility allows users to borrow money into their bank account. The amount borrowed can be repaid in installments or at the end of the billing cycle.

How to use e UPI credit line

-Through UPI Credit Line, users can avail of loans based on their transaction history and credit score.

-Before using this facility, users can authenticate the transaction with a UPI PIN. After this, they can make payments anywhere througha  QR code.

-The UPI credit line works as a digital credit card. In this, just like a credit card, a limit of amount is given to the customer to spend.

-To take advantage of this facility, one has to first apply in the bank.

-After getting approval from the bank, you will be able to make payments through UPI whether you have money in your account or not.