‘Pre-sanctioned credit lines on UPI will aid in accelerating transactions’

The Reserve Bank’s announcement to allow banks to issue pre-sanctioned credit lines on the Unified Payments Interface (UPI) system will aid in accelerating the growth in transactions, UCO Bank MD and CEO Ashwani Kumar said on Tuesday.

“According to the recent National Payments Corporation of India (NPCI) data, UPI transactions have touched 10 billion in a month, and in 18-24 months, it is expected to touch 20 billion.

“But with the RBI’s announcement of a credit line available to UPI, I think days are not far that…Transactions will accelerate further,” Kumar said while speaking in a panel discussion ‘Leveraging Digital Infrastructure for transformation in lending & payments’ at the three-day ‘Global Fintech Fest 2023’.