Decoding UPI Credit: From How It Works To Its Benefit - Here's A To Z About It

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New Delhi: Imagine you're nearing the end of the month, and your savings are running a bit low. Well, don't worry! Because soon, you might have a financial superhero in your corner! It's called the Unified Payments Interface, or UPI, and it's like a pre-approved safety net for your finances.

Think of it as a secret stash of money that you can dip into when you need it most. When you're out shopping or making payments, this magical credit line can come to your rescue. ()

Let's delve dip into how it works and each aspect of it. ()

What Is Credit On UPI?

A few months back, the UPI System could only be used to transfer the deposited amount. The Unified Payments Interface (UPI) System will now contain pre-approved credit lines that banks have provided for transactions, according to the Reserve Bank of India (RBI), which announced this on Monday.

RBI Decision

The Reserve Bank suggested on April 6, 2023, to broaden the use of the Unified Payments Interface by allowing transfers to/from pre-approved credit lines at banks.

What Can Be Linked To UPI?

Currently, UPI can be connected to savings accounts, overdraft accounts, prepaid wallets, and credit cards.

UPI Transactions

Currently, UPI transactions can take place between bank deposit accounts and are occasionally mediated by prepaid devices like wallets.