MUMBAI — The Reserve Bank of India (RBI) on September 4 enabled the Unified Payment Interface (UPI) transaction from the pre-sanctioned credit lines from banks.
“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,” RBI said in a release.
On April 6, the central bank had during its bi-monthly monetary policy meeting proposed permitting payments through transfer of pre-sanctioned credit lines by banks. This was with an aim to increase the scope of the UPI.
The central bank further said 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.
On September 1, data from the National Payments Corporation of India (NPCI) showed that the UPI has crossed 10 billion transactions in a month for the first time in August.
As of August 30, UPI reported 10.24 billion transactions during the month and the transaction value stood at INR 15.18 lakh crore.
In July, UPI platform had seen 9.96 billion transactions.
During the month of August, UPI was doing around 330 million transactions a day. With that run rate, UPI should touch around 10.5 billion transactions in August, a month-on-month growth of 5 percent.
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