![\"UPI\"](\"https:\/\/www.newsbeep.com\/ca\/wp-content\/uploads\/2025\/07\/152311780.jpg\" "\\"UPI\\"\/")
<\/p>\n<\/p>\n
NBFCs to be linked directly to UPI apps like PhonePe, Paytm, and Google Pay (AI Generated Image)<\/p>\n
Starting next month, you\u2019ll be able to use UPI not just for basic payments, but also to access loans against fixed deposits, gold, shares, property, and more. In a major upgrade to India\u2019s digital payments ecosystem, the NPCI (National Payments Corporation of India) has issued new guidelines allowing credit lines from banks and NBFCs to be linked directly to UPI apps like PhonePe, Paytm, and Google Pay, said a ET report.<\/p>\n
What\u2019s New? Until now, UPI-based loans were limited to pre-approved credit lines and RuPay credit cards. But from August 31, 2025, users will be allowed to link credit lines backed by:<\/p>\n
Gold<\/p>\n
Property<\/p>\n
Shares & Bonds<\/p>\n
Business or Personal Loans<\/p>\n
Kisan Credit Card (KCC) loans<\/p>\n
And other approved categories<\/p>\n
How Will It Work? Once linked, you can:<\/p>\n
Withdraw cash (limit: \u20b910,000\/day)<\/p>\n
Send money to individuals (P2P)<\/p>\n
Make purchases at small shops (P2PM, up to \u20b950,000\/month)<\/p>\n
Continue merchant payments (P2M)<\/p>\n
However, all this will still depend on whether your bank approves the UPI linkage of your credit line. Banks will assess each transaction based on the original loan purpose and internal rules.<\/p>\n
Why It Matters This change could:<\/p>\n
Enable instant access to sanctioned loan amounts via UPI<\/p>\n
Simplify payments from business or secured loan accounts<\/p>\n
Reduce dependence on manual bank transfers for loan-linked spending<\/p>\n
For instance, if you\u2019ve taken a business loan secured against gold, you could soon use UPI to pay your supplier directly\u2014without logging into net banking.<\/p>\n
But There\u2019s a Catch Each transaction must match the original purpose of the loan.<\/p>\n
Banks may decline UPI payments if they don\u2019t align with loan conditions.<\/p>\n
Daily UPI caps still apply: \u20b91 lakh for transfers, 20 transactions max\/day.<\/p>\n
Banks may apply their own limits and decide which merchant categories are allowed.<\/p>\n
Expert Take Rohit Mahajan of plutosONE notes, \u201cThis will turn UPI into a universal payment tool\u2014not just for spending your money, but also your credit. But final control remains with the bank.\u201d<\/p>\n
Prabhu Rangarajan of M2P Fintech adds, \u201cBanks will enable only purpose-linked spending. Credit lines for medical expenses won\u2019t be allowed for buying gold or gambling.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"NBFCs to be linked directly to UPI apps like PhonePe, Paytm, and Google Pay (AI Generated Image) Starting…\n","protected":false},"author":2,"featured_media":11568,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16],"tags":[4498,49,48,11101,11109,46,11113,11103,11119,11102,11118,11117,11116,11100,4440,190,11115,11106,11112,11114,11111,61,4074,11110,11108,11107,11104,11105],"class_list":["post-11567","post","type-post","status-publish","format-standard","has-post-thumbnail","category-mobile","tag-banks","tag-ca","tag-canada","tag-credit-line-upi-update","tag-credit-on-property-upi","tag-economy","tag-expert-take-rohit-mahajan","tag-fd-overdraft-upi","tag-fintech","tag-gold-loan-via-upi","tag-google-pay","tag-kcc","tag-kisan-credit-card","tag-loan-on-upi","tag-max","tag-mobile","tag-national-payments-corporation","tag-npci-credit-line-circular","tag-paytm","tag-phonepe","tag-reduce","tag-technology","tag-times-now","tag-upi","tag-upi-bank-guidelines-2025","tag-upi-business-loan-use","tag-upi-cash-withdrawal-rule","tag-upi-credit-line-linking"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/11567","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=11567"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/11567\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/11568"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=11567"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=11567"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=11567"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}