UPI Now Pay Later: Has it ever happened to you that you have to make an important payment and there is not enough balance in the account, in such a situation your work will not be possible. But now it is not so, Reserve Bank of India (RBI) has now approved to offer credit line service for UPI users, that is, now you can make payment even if you have zero balance in your bank.
Actually, RBI has given approval to banks to add ‘Pay Later’ service in UPI. Some banks have introduced ‘Pay Later’ option to help users make payments with their pre-approved credit limit. Let us know how it works and what kind of charges have to be paid?
What is UPI Pay Later?
Recently RBI has given approval to banks to add ‘Pay Later’ service in UPI. In this, users can now make payments even if they have an empty bank account. This option is similar to ‘Buy Now Pay Later’. Till now, users using UPI could link only their savings account, overdraft account, prepaid wallet and credit card to UPI, but now credit line limit can be used for UPI transactions. This service will be available on almost every UPI application.
How will UPI Pay Later work?
Currently HDFC and ICICI banks have started UPI Now Pay Later service. Both banks have kept a maximum credit limit of Rs 50,000 depending on the eligibility of the account holder. RBI has also asked all other banks to add this facility with UPI.