The National Payments Corporation of India (NPCI) on September 20, 2023, issued an Operating circular for Pre-Sanctioned Credit Lines at Banks through UPI
This has a reference to the RBI Circular No: RBI/2023-24/58 CO.DPSS.POLC.No.S-567/02-23-001/2023-2024 dated September 04, 2023, with subject 'Operation of Pre-Sanctioned Credit Lines at Banks through Unified Payments Interface (UPI)'.
The following rules for operationalizing have been stated: -
• It states that During credit line onboarding on the apps, the device binding and UPI PIN setting process shall include and be construed as customer consent for credit line enablement and acceptance for all types of transactions on UPI. For international transaction enablement on UPI, the existing process from the UPI app shall apply.
• It states that the Acquirers shall ensure that cash withdrawal at merchants shall not be permitted.
• The Acquirers shall ensure overall compliance, monitoring, and hygiene for the merchant ecosystem such as tagging of MCC, and online/ offline merchants as per regulatory compliance.
• The Members shall not permit transactions for all the restricted categories as per the extant regulations.
• The Acquirers shall inform and educate merchants, to enable all merchants for credit line accounts through UPI acceptance and shall ensure transparency.
• Members shall follow standard transaction limits as defined in NPCI circular NPCl/UPI/OC¬120/2021 dated September 24, 2021, and as updated from time to time.
• The Apps shall ensure complete transparency on transactions made by customers using credit lines, by means of easily accessible transaction history and clearly visible user interface, while making the payment. Credit line issuers and apps shall send appropriate notifications/communications to the customer, during each event of credit line lifecycle for such transactions.
• The customer shall be able to set the default option between any linked accounts for merchant transactions.
• The Merchant shall get an instant notification that the transaction is carried out using a linked credit line account.
• All UPI features/ functionalities shall be applicable for Credit line accounts linked to UPI apps.
[Notification No. NPCl/UPI/OC No.171/2023-24]
