UPI Payment – Big good news for customers using UPI. Let us tell you that the Reserve Bank of India (RBI) has instructed all the banks to provide the service of completion of payment to their customers even if they have ‘zero balance’ on UPI, so that the customers remain ‘heroes’ while making payments. …
Imagine what it would be like, you go for some important work and you have to pay Rs 100, but only Rs 99.90 are left in your account. In such circumstances you will not be able to make that payment. Now on such occasions or even if there is zero balance in the account, payment will be made through your UPI app.
The Reserve Bank of India (RBI) has directed all banks to provide payment completion service to their customers even if they have ‘zero balance’ on UPI, so that the customers remain ‘heroes’ while making payments.
Actually, RBI has asked banks to add services like ‘Buy Now, Pay Later’ with UPI. This will be known as ‘UPI Now, Pay Later’ service. This bank will allow customers to make payments through UPI even if their bank account is empty.
Making UPI a Super App-
Considering the popularity and ease of use of UPI among the people, the government and RBI are trying to make it a ‘super app’ or ‘super product’. Currently, people were allowed to link only savings accounts, overdraft accounts, prepaid wallets and credit cards with their UPI ID.
Now RBI has given permission to banks to make UPI payment even through ‘pre-approved credit line’, that is, even if the bank account is clean, payment will be done through UPI instantly. However, you will have to return this money to the bank later.
What is UPI Now, Pay Later service?
RBI has recently issued a notification. According to this, now all commercial banks will be able to provide the facility of ‘pre-approved credit line’ (borrowing facility up to a certain limit) to their customers for UPI payment on the basis of their prior consent. With this, bank customers will be able to make payment equal to this credit line through UPI despite having zero balance.
Banks will decide the credit line limit for customers. Many factors like customer’s payment history, credit history etc. will be important in this. This facility can be availed from Google Pay, Paytm, MobiKwik, Phone Pay and other UPI apps.
