The Reserve Bank of India ie RBI has approved the use of credit lines in banks through the Unified Payments Interface (UPI). Shaktikanta Das made this announcement while announcing the decisions of the bi-monthly Monetary Policy Committee meeting on 6th April.
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The Reserve Bank of India ie RBI has approved the use of credit lines in banks through the Unified Payments Interface (UPI). Reserve Bank Governor Shaktikanta Das made this announcement while announcing the decisions of the bi-monthly Monetary Policy Committee meeting on 6 April. Das said that the use of UPI will be increased. For this, permission has been given to use the existing credit lines in banks through UPI. He said that this will further encourage innovation.
How to get benefit?
The central bank said that at present, UPI transactions are carried out between two deposit accounts in banks, some of which are through prepaid instruments, which include wallets. Now there is a proposal to increase the area of UPI. Transfer will be done through pre-authorized credit lines in banks. In other words, the UPI network will facilitate payments financed by credit from banks.
Meanwhile, RBI Governor Shaktikanta Das has not increased the policy rate, giving great relief to the common people. RBI MPC has kept the repo rate at 6.50%. After this decision, there will be no increase in EMI of common people. By the way, in the last one year, RBI has increased the repo rate by 2.50 percent. At the same time, the estimate of GDP rate for April-June 2023 has been retained at 7.8 percent.
Recent changes regarding 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.).
For this, NPCI has introduced interchange charges of up to 1.1 percent, which will be applicable only on PPI merchant transactions. NPCI has clearly said that this charge is not for the customer. Nor will this normal UPI payment that happens between bank to bank account be applicable. At the same time, now on the UPI app itself, customers will get the facility to make payments through bank accounts, Rupay credit cards and prepaid wallets.
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