What Changes With RBI’s New Directions On Credit On UPI?

by · Inc42

SUMMARY

  • The RBI has clarified that UPI-linked credit lines are governed by the same prudential norms as any other credit facilities
  • This closes a regulatory loophole and dictates that banks must treat a credit line extended through UPI the same as one extended by any other mechanism
  • Experts believe the move is a follow up to the RBI’s ban on loading non-bank PPIs with credit lines and sets the guardrails for the growth of credit on UPI