New Delhi, Sept. 20 -- UPI users can use certain pre-sanctioned credit lines as a source of funds, allowing eligible customers to make payments through UPI using borrowed money instead of the balance in their bank account.

However, this is not an entirely new facility. RuPay credit cards can already be linked to UPI for eligible merchant payments, while credit-linked UPI products have also been introduced in the market.

The NPCI's UPI Consolidated Circular released on 18 September has mentioned the framework for using both interest-free and interest-bearing credit lines across UPI.

The circular states that "UPI supports inclusion of pre-sanctioned credit lines as a source of funds" and that credit on UPI will provide a "seamless, UPI-e...