Credit through UPI app & the Super plan of RBI!

The number of digital money transactions in India is increasing day by day. It is noteworthy that the number of people making UPI transactions through apps like Google Pay and Phone Pay is increasing significantly every year.

 RBI has decided to improve the convenience of UPI users. That means RBI has allowed to bring the facility of pre-approved loan in UPI facility.It is noteworthy that people everywhere from villages to cities have started supporting digital transactions. From drinking tea to paying house rent and paying electricity bills, people are using UPI to make payments. In this case, with a view to further expand the UPI and consumer credit market in the country, the Reserve Bank has allowed users to avail loans.

This means that users can take credit and carry out UPI transactions even if they don't have any money in their bank account.In a circular issued on September 4, the RBI has specifically allowed banks to issue loans under this new system. Similarly, lending institutions may communicate these loan-specific terms and conditions to users, RBI said.
It is also said that it is necessary for UPI systems to obtain prior permission from users for this. And it seems that this new facility in UPI will be similar to the credit card application. But this new facility in UPI service will definitely come in handy in times of emergency.
This is a welcome initiative. Super Scheme of Reserve Bank of India. At the same time, the expectation of UPI users is to implement it in a way that does not expose them to any fraud!