Credit Line on UPI: The Reserve Bank of India now allows Small Finance Banks to give loans to increase economic activities. This decision allows small entrepreneurs and traders in villages and towns to obtain loans at affordable interest rates.
New Customers Will Start Joining The Bank
This is good news for small finance banks. Getting a loan through UPI (Credit Line on UPI) will open new business avenues for these banks. Many small finance banks (SFBs) like AU Bank have already started offering loans through credit cards. With this easy way, new customers will join the banks.
Now There Is No Hassle In Getting Financial Assistance
Loan facilities through UPI will reach more and more people. This also makes the transaction between the bank and the customer very easy. Along with promoting economic development, those deprived communities also get financial assistance when needed. In such a situation, due to this facility, they will no longer have any problem starting their work or business at a small level, which will open new avenues of economic development along with financial activities in the market. New employment opportunities will open up.
These Businessmen Will Get A Lot Of Help
Small Finance Banks are a category of banks in India created to provide basic banking services to small business people and small and cottage industries. These banks are operated by the Reserve Bank of India (RBI) under the Banking Regulation Act of 1949 and get a license from RBI.
