The National Payments Corporation of India (NPCI) on July 10, 2025, issued the addendum to the Operating Circular for Pre-Sanctioned Credit Lines at Banks through UPI.
The following has been stated namely: -
• To ensure a consistent customer experience, the use of Interest Bearing Credit Lines linked to UPI shall align with the sanctioned loan purpose and applicable regulations.
• Issuers shall define usage terms through a Board-approved policy and ensure legal and regulatory compliance. They are responsible for approving or declining UPI transactions based on the credit’s defined purpose.
• All UPI Member Banks, PSPs, sub-members, and app providers shall enable specific MCCs accordingly.
• These guidelines shall be implemented by August 31, 2025.
[Notification no. - NPCI/UPI/OC/171A/2025-26]
