UPI Now, Pay Later: The RBI has recently enabled transfers from pre-sanctioned credit lines at banks through the UPI network. You can spend from a pre-sanctioned credit line and repay the bank later. Pre-approved credit is nothing but an overdraft facility offered by banks. This facility can be used through UPI applications such as Google Pay, MobiKwik, Paytm and, mobile banking UPI applications. How does it work? Read on to find out.
It is important for users to know that there is a daily transaction restriction of Rs 1 lakh or ten transactions per day, which is calculated on a 24-hour basis. The 10-transaction limitation only applies to fund transfers and does not apply to bill payments or merchant transactions.