UPI Credit Line Update: With increasing digitalization, the use of digital payments is growing rapidly in India. From small tea stalls to large transactions, most people now prefer to pay via UPI. In December 2025, more than 21.63 billion transactions were recorded through UPI, showing an increase of about 29 percent year-on-year. Amidst this growing usage, a significant change is coming to UPI, which could be a major relief for common people.
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UPI to Offer Credit Card-Like Benefits
Soon, UPI apps will offer a limited loan facility similar to credit cards. In this new system, users will be given a credit line of up to ₹5,000, which can be used for daily expenses. The most important feature is that this credit will also have an interest-free period. This means that no interest will be charged if the amount is repaid within the stipulated time. The Reserve Bank of India and NPCI are jointly preparing to implement this facility.
How will common users benefit?
This facility will directly benefit salaried individuals, small business owners, and those who find it difficult to obtain a credit card. Now, even with low or zero balances in their bank accounts, they will be able to make necessary payments. Some banks are planning to offer an interest-free period of 30 to 45 days on this credit line. No additional charges will be levied if the amount is repaid within this period.
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Announcement made earlier
The idea of providing credit through UPI had emerged last year, but its implementation was delayed due to some technical and policy reasons. These included issues such as coordination among banks and the interest-free period. Now, some institutions like Yes Bank and Sarvodaya Small Finance Bank have started working in this direction. It is expected that many more banks will join this facility in the coming months, making UPI even more useful for common people.
