UPI Payment: How will UPI payment be done if there is no money in the bank account? Know here in one click!
UPI is now a super app on your smart mobile. Now you can use it by linking savings accounts, overdraft accounts, credit cards, and prepaid wallet accounts. You can buy goods by going to any shop. If you have zero balance in your account then this facility will be useful for you. UPI payments can be made even if there is no money in the account. You don't have to worry about having zero balance on your mobile with UPI Hero. Customers can purchase goods using UPI payment. There are answers to many questions like how this feature will work, how money will be deposited in the account, and how it will be used.
What is the instruction of RBI?
The Reserve Bank of India has recently given instructions to the banks. The bank is working to provide UPI Now, Pay Late service to the customers. Customers can make payments through UPI even with zero balances up to a certain limit. Many people have asked what is this service, how will they get the benefit of this service, and what can this amount be used for. Banks will now provide pre-approved credit lines to customers. Customers can make UPI payments based on credit lines, even if they have zero balance in their bank account.
What is a pre-approved credit line?
A true pre-approved credit line would be an overdraft facility for banks. Its benefit can be availed through the UPI mobile app currently available in the market. Before establishing a credit line, customers must obtain permission for it. Once the credit line is approved, goods can be purchased through UPI payments. This amount will have to be paid within the stipulated time by the stipulated date.
What interest will be charged?
RBI has made it easier for banks to decide how much interest to charge on credit lines. Some banks charge interest for this service while some banks do not charge interest for a certain period. This service works almost like a 'Buy Now, Pay Later' service.
These banks took the lead
As per RBI guidelines, two private sector banks HDFC Bank and ICICI Bank have launched the 'UPI Now, Pay Later' service. HDFC Bank will charge a one-time processing fee of Rs 149 for this. After that, a credit line account will be opened. This account will be linked to your debit card. ICIC Bank will issue a UPI ID to the customer for this. The bank will not charge any fee for this.