In the coming days, you will use a credit line, not a credit card. This is a new system, which will be like a credit card and the loan will be available online.
The central bank has said that Unified Payment Interface (UPI) will be linked to pre-approved credit lines of all banks in the country. With the new UPI rules in place, borrowers will be able to use UPI to buy now, pay later, such as digital credit lines. This also includes the recent permission to link RuPay Credit Cards to UPI.
Customers will get these benefits
Now the question arises that how will the customers benefit from this. Let’s find out.
- Customers will not have to carry separate cards. You will be able to pay through UPI from your mobile only.
- Apart from this, time will also be saved. It takes some time to get a credit card. Credit line will be available immediately after approval.
- The point-of-purchase credit experience will be seamless. This can bring fast growth in BNPL sector.
Digital payments grew rapidly in the country with UPI
With the launch of UPI in the year 2016, there was a revolution in the world of digital payments. UPI gave the facility to transfer money directly to the bank account. Earlier there was a trend of digital wallet. There is a hassle like KYC in Wallet, while nothing like this has to be done in UPI.
Penau is a payment system similar to UPI developed by the Association of Banks in Singapore. RBI has the operation of RTGS and NEFT payment system in India. At the same time, National Payment Corporation of India (NPCI) operates systems like IMPS, RuPay, UPI.
Let us tell you that recently the facility to pay with prepaid wallet and Rupay credit card has been added to the UPI ecosystem. Therefore, now permission has been given to levy Prepaid Payment Instrument (PPI) fees. In this way it will be easy to make UPI payments through PPIs (credit cards and wallets etc.).
