RBI Allows Small Finance Banks To Offer Credit On UPI

The Reserve Bank of India (RBI) has permitted small finance banks to offer credit through the Unified Payments Interface (UPI), a move aimed at increasing financial inclusion. Small finance banks, which focus on providing banking services to underserved sectors, will now be able to leverage UPI to offer credit products like personal loans and overdrafts. This decision marks a significant step towards improving access to financial services for the unbanked population, enabling seamless digital transactions and encouraging financial empowerment. The move is expected to enhance competition in the financial sector and support the government’s push for a more inclusive digital economy.