Country There is good news for small finance banks. RBI on Friday proposed to allow small finance banks to give pre-approved loans through UPI. UPI is a fast real-time payment system developed by the National Payments Corporation of India (NPCI) for transactions through mobile phones. The scope of UPI was expanded in September 2023. Under this, pre-approved loan was added through UPI. Facility to be used as 'funding' account by commercial banks except Payment Banks, Small Finance Banks and Regional Rural Banks.
Financial products will be available at low prices and in short time
Reserve Bank of India Governor Shaktikanta Das said that there are opportunities to provide loans to customers at lower prices and in less time under pre-approved loans on UPI. He said that small finance banks adopt high technology, low cost models to reach the end consumer and can play an important role in expanding the reach of credit on UPI. “Therefore, it is proposed to allow small finance banks to offer pre-approved loans through UPI,” Das said while announcing the bi-monthly monetary policy. Necessary guidelines will be issued soon.
RBI will start podcast
The Governor also said that the Reserve Bank will make use of traditional as well as new age communication technology to ensure transparency of its decisions and to explain the rationale behind its decisions to make them more effective and to disseminate various awareness messages to the wider public. Is using. The central bank has been expanding the scope of its various public awareness activities over the past few years, including through social media. Das said that in continuation of this effort, the Reserve Bank proposes to launch 'Podcasts' for wider dissemination of information of interest to the general public.
(With inputs from PTI/Language)
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