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Credit in UPI: You must be using UPI. Soon such a facility is going to come in it, which will help you financially and ...Read more

New Delhi. It happens many times when we do not have money for immediate expenses and have to beg a shopkeeper for goods on credit. But, this problem of the common man is going to end soon. National Payment Corporation of India (NPCI) is going to launch a big facility for the customers using UPI soon. After the launch of the new facility, your UPI account will work like a credit card, where the customer will be able to make UPI payment easily even if there is no money in the account.

NPCI says that now the user's UPI account will work as a credit card and every customer will get a credit line according to his CIBIL score. This credit can be used only with merchants. In return, the banks will also charge a fixed interest. NPCI has currently talked to many private and government banks which have also agreed for this. NPCI has so far got the support of ICICI Bank, HDFC Bank, PNB, Indian Bank and Axis Bank for this facility.

Shopkeepers' problems also solved
It is not that only customers will get the benefit of this facility, shopkeepers will also get benefit from it. Currently, shopkeepers have to pay a charge of about 2% for payment of more than 2 thousand rupees through credit card. After getting a credit line in UPI, you will not have to pay such fees. It is a different matter that you do not have to pay any interest on the card, whereas you will have to pay interest on the credit line of UPI.

Interest only on the amount spent
You will not have to pay any interest on the credit line available in UPI until you have not used the funds. You will have to pay interest only on the amount of funds you use. This will work like an overdraft facility. Suppose you got a credit line of 20 thousand and used only 10 thousand, then you will have to pay interest only on 10 thousand rupees.

UPI will be the solution to all problems
You will be surprised to know that the UPI facility launched 8 years ago has almost eliminated the use of debit cards in digital payments. Now with the availability of credit line in UPI, the use of credit cards will be curbed. According to Amazon's report, 53% of online shopping customers make payments using UPI. 25% of customers also use UPI for offline shopping. Not only this, UPI has now gone beyond the borders of India and is providing its services in 7 countries.