RBI proposes UPI transactions from pre-sanctioned credit lines. This will help in the development of unique products for Indian markets, said the central bank.
Banking & Finance
With the aim of expanding the scope of UPI, the RBI has proposed permitting payments through transfer of pre-sanctioned credit lines by banks. UPI network will facilitate payments financed by credit from banks. This can reduce the cost of such offerings and help in development of unique products for Indian markets,” said the central bank in its statement on Developmental and Regulatory Policies. At present, UPI transactions are enabled between deposit accounts at banks, sometimes intermediated by pre-paid instruments, including wallets. RuPay credit cards are also permitted to be linked to UPI.The UPI platform handles 75 per cent of the retail digital payments volume.
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