UPI Credit Lone: Now you can get loan for small expenses through UPI, NPCI is bringing amazing features!
UPI has given a new impetus to India’s digital economy, but now NPCI is eyeing global expansion of the user base. Big steps are being taken in new areas like artificial intelligence, credit innovation and international payments. This change is not only of technology but also of trust and inclusion.
UPI Credit Line: When UPI was launched in the year 2016, hardly anyone would have thought that its transactions could reach 100 to 150 billion per month. But according to Dilip Asbe, CEO of National Payments Corporation of India (NPCI), this dream is not far away now. Currently, 40 to 45 crore users use UPI, but with the right strategy and innovation, this figure can go up to one billion.
1. UPI won trust
UPI has changed people’s shopping habits. Now digital payment is being made even for a cup of tea worth ₹10. But the road ahead is not easy. To reach the next 60 crore users, NPCI will have to do a lot more than just digital payment. For this, easy interface, safety campaign and initial incentives are necessary. NPCI has done a great job in making small transactions faster and simpler by introducing features like UPI Lite and UPI Lite X.
2. Now not just payment, but also loan facility!
NPCI’s next big focus is to provide loan through Credit Line on UPI. NPCI’s vision is to provide easy loan facility at low interest for small and recurring expenses. This will be different from the traditional credit card model and will be more transparent and controlled due to UPI’s digital tracking capability. With the support of the Reserve Bank of India (RBI) and the government, this system can connect millions of people to the formal credit system.
3. Step towards AI, blockchain and digital currency
NPCI is no longer just an institution providing payment platform, but it has become a technology innovation center. Using artificial intelligence, fraud detection is now happening in real time, and the UPI fraud rate is less than 1 basis point. Meaning, less than one in every 100 transactions is fraudulent through UPI. Apart from this, NPCI has also increased investment in areas like blockchain and digital currency. It is like laying a strong foundation for the future.
4. UPI is reaching the world
India’s UPI payment system is no longer just domestic, but it is making a global identity. NPCI has implemented its technology in seven countries and talks are going on with four-five other countries. NPCI’s dream is that Indian merchants do cross-border transactions through UPI. NPCI will ensure to keep it fast, cheap and transparent.
5. New players, new competition
In 2024, a record 20 companies got UPI approval. The reason for this is zero MDR (Merchant Discount Rate) and incentives being given by the government. This is giving startups a chance to reach customers faster. However, NPCI aims to maintain balance in the market, so they have extended the deadline till 2026 regarding the market cap limit of some top apps. New players like Cred, Navi, super.money, Paytm are now emerging, increasing both competition and innovation in the market.
UPI, the pride of India
NPCI has so far saved a surplus of ₹1,100 crore for investment. Two data centers are operational in Hyderabad and Chennai and the third is ready. The fourth is also being planned. Also, BHIM App has been separated from NPCI to maintain clarity and balance between government and private platforms.
UPI is no longer just a tech innovation, but has become the soul of India’s digital future. The next phase is definitely challenging, but NPCI’s plans, investments and policies show that it is ready for this change. From the common man of India to the global stage, the impact of UPI will now be felt in every direction.
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