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

A few years after launching credit on UPI, the RBI has now reiterated the regulatory framework governing credit on UPI, bringing the rules for pre-sanctioned credit lines in line with existing lending norms for banks. Under the updated guidelines, the central bank has mandated that all UPI-linked credit lines follow the exact same prudential norms and regulations as traditional loans. This eliminates the regulatory loopholes that previously allowed banks to treat UPI credit products differently