Make payments through Google Pay from an account with zero balance; here is how

NEW DELHI: UPI (Unified Payments Interface) payment system to make payments even if there is not enough money in the account is coming. The new facility is being prepared after the Reserve Bank has recently given approval to banks for providing credit line facilities. This is a method where users can make transactions up to the allowed limit and then pay this amount back later.

Currently, users can only link savings accounts, overdraft accounts, prepaid wallets, credit cards, etc. to the UPI system. However, through the new facility, UPI transactions within the pre-sanctioned credit limit will also be possible. Commercial banks can provide this facility to individuals. It requires users' prior consent.

This facility can be availed through UPI applications like Google Pay and Paytm but the policies of different banks will be applicable. The bank will seek the user's permission to open a line of credit within the pre-approved limit. Once this process is completed, transactions can be made through UPI applications within the allowed limits. Dues must be settled before the due date. Some banks charge interest on the amount used while providing the credit line facility. Interest rates vary from bank to bank. The repayment period allowed by banks may also vary.

The special feature is that a pre-approved credit line is more easily available to UPI users than a credit card. For this purpose, the bank only conducts basic personal verification. This system can be used to make emergency transactions in case of lack of funds in the account.