RuPay credit cardholders from various banks can now use Google Pay for UPI transactions. This means you can make payments by scanning a merchant’s UPI QR code, even when you are offline. In 2021, India accounted for 40% of global digital transactions, thanks to the convenience of UPI, making cashless payments accessible with just a smartphone and linked mobile number.
Offline UPI Options and UPI Pay Later
You can use UPI for transactions with credit and debit cards, either by scanning a QR code or using a single-click app transfer. What’s interesting is that even if your bank account has a low balance, you can still make payments through UPI.
The Reserve Bank of India (RBI) has introduced a new feature: banks can now offer a credit line to UPI users. This means users can make purchases using a pre-approved credit limit and pay the bank back later. According to an RBI notification on September 4, this allows transactions through a pre-sanctioned credit line provided by a scheduled commercial bank to individual customers, with their consent, for UPI Pay Later transactions. But, how does this work? Let’s see the process.
You can use this feature through UPI apps like Google Pay, Paytm, MobiKwik, and specific mobile banking UPI apps as mentioned on the bank’s websites. To start, the bank needs your permission to set up a credit line with a set limit. Once approved, you can spend that approved amount through the UPI app having Pay Later and settle your dues before the due date.
Different banks have different policies. Some banks charge interest on the amount you use from the credit line, while others offer a credit-free period. During this credit-free period, which is a set time frame, there won’t be any interest on the amount used as long as you repay it within that period.
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HDFC Bank and ICICI Bank, two popular banks, now offer credit lines through HDFC UPI Now Pay Later and ICICI PayLater, respectively. To activate HDFC’s service, there’s a Rs 149 fee, while ICICI Bank’s service activation is free. However, ICICI may charge a service fee if you exceed your credit limit. Both banks have set a Rs 50,000 credit limit, subject to specific eligibility criteria.
