CURRENT AFFAIRS : BANKING & FINANCE
RBI Permits Scheduled Commercial Banks to Offer Credit Lines via UPI
- The Reserve Bank of India (RBI) has allowed scheduled commercial banks (SCBs) (excluding Payment Banks, Small Finance Banks, and Regional Rural Banks) are now allowed to facilitate payments using pre-sanctioned credit lines for individuals with their prior consent through the Unified Payments Interface (UPI) system.
- UPI currently supports linkage with savings accounts, overdraft accounts, prepaid wallets, and credit cards.
- Credit lines are now included as a funding account option within the UPI system.
