RBI allows pre-sanctioned credit lines through UPI

The Reserve Bank on Monday said the UPI System will also include pre-sanctioned credit lines issued by banks for transactions.

Earlier, only the deposited amount could be transacted through the UPI System.

In April, the RBI proposed to expand the scope of the Unified Payments Interface (UPI) by enabling transfer to/from pre-sanctioned credit lines at banks.

Currently, savings accounts, overdraft accounts, prepaid wallets and credit cards can be linked to UPI.