UPI Transactions: RBI provides way to safeguard your bank account, avail free credit period

So far UPI users were able to pay out of the balance available in their savings or current accounts. To avail credit period for buying goods or availing services, users had the option to link their accounts having overdraft facilities only.

However, there are some instances, where with slight mistake or carelessness of the users, the bank accounts linked to UPI of the users got hacked, leading to the accounts getting emptied by the fraudsters.

The RBI move would reduce the risk of bank accounts of UPI users getting emptied by the cyber fraudsters as the users will now have the option to delink their bank accounts.

As very few people have access to accounts having overdraft facilities, the facility to link Rupay Credit Cards with UPI will now allow more and more people to pay later by availing the free credit period available to users of the credit cards.