Reserve Bank of India today placed on its website an updated circular on Operation of Pre-Sanctioned Credit Lines at Banks through Unified Payments Interface (UPI). As announced in the Statement on Developmental and Regulatory Policies dated December 06, 2024, the scope of credit on UPI is extended to SFBs as well.
Under this facility, payments through a pre-sanctioned credit line issued by a Scheduled Commercial Bank to individuals, with prior consent of the individual customer, are enabled for transactions using the UPI System. Banks may, as per their Board approved policy, stipulate terms and conditions of use of such credit lines. The terms may include, among other items, credit limit, period of credit, rate of interest, etc.
