India, Feb. 14 -- The Reserve Bank of India (RBI) has now allowed small finance banks (SFBs) to offer pre-sanctioned credit lines via UPI.

Announced on February 12, the move builds on the RBI introducing credit lines via UPI in September 2023 for banks and third-party apps.

Notably, pre-sanctioned credit lines via UPI allow customers to access pre-approved credit directly on the platform.

The addition of pre-sanctioned credit lines will enable consumers to seamlessly access loans. However, users will have to give explicit consent before using these credit lines.

"Under this facility, payments through a pre-sanctioned credit line issued by a scheduled commercial bank to individuals, with prior consent of the individual customer, are en...