In the era of Digital India, banking is becoming even easier, especially for rural women. Bank of Baroda has started a new facility, under which women will now be able to take small loan i.e. overdraft through UPI. This facility has been brought especially for women associated with Self Help Groups (SHG), so that they can get money immediately without going to the bank.
Under this new service, eligible women will be able to get an overdraft of up to Rs 5,000 depending on their bank account. The special thing is that this money can be used directly through UPI app. This means that now there will be no need to stand in long queues at the bank to withdraw or transfer money. This facility is extremely beneficial for those women who have a bank account under the Pradhan Mantri Jan Dhan Yojana. This will help them get immediate help for small expenses or needs.
How does credit work on UPI?
In this initiative, the Credit Line on UPI platform of National Payments Corporation of India is being used. This has been approved by the Reserve Bank of India. Through this system, banks add the pre-determined loan limit directly to the UPI app. Payment can be made from the same whenever required. This means that now UPI has become an easy way not only to send money but also to borrow money when needed.
Rural women will get big benefits
The aim of this initiative is to provide easy loans to women living in villages. Often rural women have to face a lot of difficulties in taking loans from banks. But now this process will become completely digital, which will save both time and effort. This step is being considered as a big change in the direction of making women financially strong and making them self-reliant.
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