Overview

• From August 2025, borrowers can link pre-approved overdraft and asset-backed credit lines to UPI apps for direct access to funds.
• Asset-backed lines eligible for UPI linkage include those backed by fixed deposits, shares, bonds, gold and property.
• Linked credit lines will support merchant payments, peer-to-peer transfers and cash withdrawals via popular UPI platforms.
• All UPI member banks, payment service providers and third-party app developers have an August 31, 2025 compliance deadline to implement the changes.
• NPCI requires that funds drawn from linked credit lines be used strictly for the purpose specified at sanction, with issuers enforcing usage controls.