Credit Line on UPI: With the aim of increasing economic activities, the Reserve Bank of India has now allowed Small Finance Banks to give loans. With this decision of RBI, small entrepreneurs and traders in villages and towns will also get the facility of loan at affordable interest rate.
New customers will start joining the bank
This is a good news for small finance banks and getting 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 giving loans through credit cards. With this easy way, now new customers will also start joining the banks.
Now there is no hassle in getting financial assistance
Loan facility 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 of the society also get the facility of financial assistance when needed. In such a situation, due to this facility, they will no longer have any problem in 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 Bank is a category of banks in India, which has been created so that they can provide basic banking services to small businessmen, small and cottage industries. These banks are operated by the Reserve Bank of India (RBI) under the Banking Regulation Act, 1949. They get license from RBI.
