UPI now, pay later: HDFC Bank and ICICI Bank start credit on UPI

You can make payments through your UPI even if your bank account lacks sufficient funds as the Reserve Bank of India has paved the way for transfers from pre-sanctioned credit lines at banks via the UPI network.

Until now, UPI users could only link their savings accounts, overdraft accounts, prepaid wallets, and credit cards to the UPI system. However, the RBI has now allowed you to harness your pre-approved credit line to conduct UPI transactions.

According to a notification from the RBI on September 4, 2023, banks can offer a credit line facility to UPI users, allowing users to spend from a pre-sanctioned credit line and settle the dues later.