UPI to Offer Interest-Free Loans Like Credit Cards: Big Relief for Users!

• UPI is set to introduce a new feature allowing small, interest-free loans for a limited period, similar to credit cards.
• Discussions are ongoing between banks and NPCI to implement a grace period for UPI credit lines, eliminating immediate interest charges.
• Currently, UPI credit lines accrue interest from day one, deterring many users from utilizing the facility.
• The new plan aims to provide a grace period, allowing users to repay borrowed amounts before a due date without incurring interest.
• Yes Bank and Suryoday Small Finance Bank have already started offering interest-free periods of up to 45 and 30 days respectively on their UPI credit lines.

Why It Matters: UPI is evolving to offer interest-free credit lines, providing users with financial flexibility akin to credit cards.