Nowadays money transactions in India are slowly going digital. Thanks to Digital India, everyone is now using UPI through smartphones to make payments. If you are a UPI user, this news will make you happy. From now on even if you have zero balance in your bank account, you can make payments using UPI. This is what happens! In fact the Reserve Bank of India or RBI has now approved credit line services for UPI users. Now you can make payments even if you have zero balance in the bank.
RBI has approved banks to add ‘Pay Letter’ service to UPI. Some banks have introduced ‘Pay Letter’ option to help users make payments with their pre-approved credit limit. It allows users to make payments even if they have an empty bank account. How will UPI work in this pay letter system? Read the last part of the report if you want to know.
First, banks have to get approval from the customer for the line of credit and then the credit limit is set. Users can activate the ‘Pay Letter’ option in their UPI app. After making the payment, the bank gives you time to repay it and you don’t have to pay any extra charges for it. Let us inform you that HDFC and ICICI banks have launched UPI Now Pay Later service Both banks have a maximum credit limit of Rs 50,000 depending on the eligibility of the account holder. RBI has ordered all other banks to link this facility with UPI.