UPI network will facilitate payments financed by credit from banks.
UPI network will facilitate payments financed by credit from banks.
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– Unified Payments Interface (UPI) is a robust payments platform supporting an array of features.
– Presently it handles 75% of the retail digital payments volume in India.
– The UPI system has been leveraged to develop products and features aligned with India’s payments digitization goals.
– Recently, RuPay credit cards were permitted to be linked to UPI.
– At present, UPI transactions are enabled between deposit accounts at banks, sometimes intermediated by pre-paid instruments including wallets.
– It is now proposed to expand the scope of UPI by enabling transfer to/from pre-sanctioned credit lines at banks, in addition to deposit accounts.
– In other words, the UPI network will facilitate payments financed by credit from banks.
#Benefits – This can reduce the cost of such offerings and help in the development of unique products for Indian markets.
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