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UPI credit line system will be launched: In the coming days, you will be able to make UPI payments easily even if you do not have balance in your bank account. National Payments Corporation of India is soon going to launch a credit line facility for UPI users. Credit line on UPI was announced about nine months ago. After the launch of this feature, your UPI account will be able to work like a credit card.
Credit line on UPI will be similar to a pre-approved loan for customers using a bank account. In which the user can make payment even if there is no balance in the account. Which has to be paid to the bank later.
1.2% interchange will be applicable
The commission paid to the merchant credit issuer on each transaction is known as interchange. Which is 90 percent of the merchant discount rate. This fee is paid to commercial banks for facilitating transactions. The company may soon announce a 1.2 percent interchange for UPI credit lines. A circular will be issued in this regard. There is also a discussion on the share of earnings through UPI apps and banks.
The bank will charge fixed interest
UPI credit limit will be available according to CIBIL score. Which can be used only with the merchant. In return, the bank will charge a certain interest. For which a meeting has been held with private and government banks. So far ICICI Bank, HDFC Bank, PNB, Indian Bank and Axis Bank have given permission to join this system.
Shopkeepers will also benefit
This facility will benefit both customers and shopkeepers. Currently, shopkeepers have to pay a fee of about 2 percent on payments of more than Rs. 2000 through credit card. After getting a credit line in UPI, the buyer will not have to pay any charge. It is worth noting that no interest has to be paid on credit card for a certain period. But interest has to be paid on UPI credit line.
UPI to be launched in Qatar
National Payments Corporation of India has tied up with QNB to launch QR code based Unified Payments Interface (UPI) service in Qatar. QNB is the largest financial institution in the Middle East and Africa. The launch of the UPI service will ease browsing and shopping at retail stores, tourist attractions and destinations, creating a new payment option for Indian travellers visiting Qatar.
