In the coming days, you will be able to make UPI payments easily even if you do not have money in your account. Because, National Payment Corporation of India is soon going to start the credit line facility for customers using UPI.
The credit line on UPI was announced about nine months ago. After the introduction of this facility, your UPI account will work like a credit card. Actually, the credit line on UPI is nothing but a pre-approved loan for the customer using the bank account. This bank account is linked to the UPI accounts of the customers.
Banks will charge fixed interest
The corporation says that every customer will get a credit line according to his Cibil score. This can be used only with the merchant. In return, the banks will also charge a fixed interest. The corporation has held talks with many private and government banks in this regard. So far ICICI Bank, HDFC Bank, PNB, Indian Bank and Axis Bank have agreed to join.
Shopkeepers will also get this benefit
This facility will benefit not only customers but also shopkeepers. Currently, shopkeepers have to pay a charge of about two percent for payment of more than Rs 2000 through credit card. After getting a credit line in UPI, such fees will not have to be paid. It is a different matter that you do not have to pay any interest on a credit card for a certain period, but in UPI’s credit line, you will have to pay interest on the amount used. This will work like an overdraft facility in a way.
1.2% interchange may be charged
The commission that the merchant pays to the credit issuer on every transaction is the interchange. This is 90 percent of the merchant discount rate. Merchants pay this fee to banks to make transactions more convenient. The corporation may soon announce 1.2 percent interchange for UPI credit line. A circular may be issued soon in this regard. UPI is in talks with apps and banks regarding the share in the earnings.
UPI will be launched in Qatar
National Payments Corporation of India has tied up with QNB to launch QR code based Unified Payments Interface payment service in Qatar. The corporation said that an agreement has been signed with QNB, the largest financial institution in the Middle East and Africa, to launch UPI payments. This partnership will provide Indian tourists the option to use their preferred payment method at retail stores, tourist attractions, leisure destinations, duty-free shops and hotels.
