Farmers will have to pay interest in exchange for UPI Credit Line Facility. Currently, the corporation has talked to government and private sector banks in this regard.
How would it be if there is no money in your bank account and still the payment is made? You can also get this facility soon. UPI credit line facility can be started soon by the National Corporation of India. This facility was announced 9 months ago.
What is UPI credit line facility?
This facility is similar to pre-approved loan. UPI accounts of customers are linked to their bank accounts. Customers will get credit line facility based on CIBIL score. However, initially only traders can use it.
In return for UPI credit line facility, farmers will have to pay interest. Right now the corporation has talked to government and private sector banks in this regard. So far Indian Bank, ICICI Bank, Axis Bank, PNB have agreed to join it.
Shopkeepers currently have to pay a charge of about two percent for making payments of more than Rs 2000 through credit card. But as soon as the credit line facility is started in UPI, shopkeepers will not have to pay this charge. This facility works like an overdraft.
How much interchange will have to be paid
The commission that the merchant pays to the credit issuer on every transaction is called interchange. It can be about 90 percent of the merchant discount rate. This fee is paid by the merchants to the banks. 1.2 percent can be announced soon for UPI credit line. Circular has not been issued about it yet.
UPI facility is going to start here too
The UPI facility of National Payment Corporation of India is also going to start in Qatar. For which the corporation has joined hands with QNB to start the payment service.
