These Directions are applicable to Commercial Banks and Small Finance banks. The directions permit banks to offer pre-sanctioned credit lines through the Unified Payments Interface (UPI) with customer consent. The new provisions clarify that the prudential treatment of any credit facility, including pre-sanctioned UPI credit lines, will be determined solely by the nature of the underlying credit facility, irrespective of the payment channel, instrument, or technology used. Banks must incorporate the terms and conditions of such payment linked credit facilities into their credit policies and ensure compliance with all applicable regulations.
(Link: RBI Circular 151/2026 (SFB), 152/2026 (CB) Dated 23/06/2026)