New Delhi: The Nationwide Funds Company of India (NPCI), which operates UPI, issued a round on July 10 introducing new tips concerning pre-sanctioned credit score traces. The NPCI has instructed all UPI member banks, sub-members, PSPs, credit score line issuers and third-party app suppliers to implement these modifications earlier than August 31, 2025.

In September 2023, NPCI issued a round enabling the operations of pre-sanctioned credit score traces on UPI. 

The UPI system was initially restricted to financial savings accounts, overdraft accounts, pay as you go wallets and Rupay bank cards. This was expanded to incorporate credit score traces as a funding account which enabled transactions made by pre-sanctioned credit score traces.

In a round dated July 10, 2025, the NPCI stated, “In an effort to guarantee constant buyer expertise throughout Curiosity Bearing Credit score Traces, finish use of such pre-sanctioned credit score traces being linked to UPI shall be aligned with the aim for which mortgage was granted by the Issuer and the extant rules relevant on this regard.”

To facilitate the identical, the NPCI issued the next extra tips for the interest-bearing credit score liners. 

1. Issuers will stipulate the phrases and circumstances of use of such credit score traces. The issuer may also guarantee compliance with extant regulatory tips, financial institution coverage, authorized necessities and the outlined objective of such interest-bearing credit score line providing.

2. Issuer will approve or decline transactions initiated through UPI as per extant regulatory tips and the outlined objective of the credit score.

3. All UPI member banks, sub-members, PSPs and the third-party app suppliers will allow extra MCCs for transactions by interest-bearing account sorts.

The round additional stated that every one UPI member banks, sub-members, PSPs, credit score line issuers and third-party app suppliers are instructed to implement these modifications earlier than 31 August 2025.