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How can you make UPI payments and repay later? Know more

RuPay credit card customers from multiple banks can now use Google Pay to conduct UPI transactions. This means that users can make UPI payments even while they are offline by scanning the merchant's QR code.

In 2021, India will have a significant proportion of global digital transactions, owing to the convenience and universality of UPI, which enables cashless transactions via smartphones linked to bank accounts.

Make UPI payments without enough funds in your bank account.

HIGHLIGHTS
  • Instant credits
  • Pay to any UPI holder
  • Rupay at the end of month



UPI transactions are possible with credit and debit cards via QR code scanning or single-click app transfers. Surprisingly, you can make UPI payments even if you have a small bank balance.


The Reserve Bank of India (RBI) recently permitted banks to issue credit lines to UPI customers. Users can spend from a pre-approved credit line and make payments to the bank later. The RBI highlighted this option in a notification on September 4, indicating that transactions using a pre-approved credit line issued by scheduled commercial banks to people are now enabled for UPI transactions with the individual's prior approval. But how does it work?




Users can use UPI programs such as Google Pay, Paytm, MobiKwik, or mobile banking UPI apps to access this service, depending on the bank's website. Banks must first get the customer's permission to establish a credit line with a set amount. Once accepted, customers can use the UPI app to spend the predefined amount and repay it before the due date.




While some banks charge interest on credit lines, others provide a credit-free time. If repaid on promptly, there is no interest on the borrowed amount during this term.


Among the major banks, HDFC Bank and ICICI Bank have already launched credit lines - HDFC UPI Now Pay Later and ICICI PayLater, respectively. HDFC charges a cost of Rs 149 to activate the service, however ICICI Bank does not charge a fee. However, if consumers surpass the bank's predetermined limit, they will be charged a service fee. Both banks have established a credit ceiling of Rs 50,000, with stringent eligibility requirements.


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