The project,
in partnership with NPCI, IBA and
DAY-NRLM, creates a scalable model for nationwide expansion of inclusive
digital small-ticket lending
Mumbai : Bank of Baroda, India’s International Bank,
announced the launch of Overdraft (OD)
Facility on Credit Line on UPI for
verified women Self-Help Group (SHG) members holding Pradhan Mantri Jan Dhan
Yojana (PMJDY) accounts, becoming the first bank in the country to
operationalise this digital credit innovation. This initiative enables seamless
digital access to ₹5,000 overdraft facility, strengthening financial inclusion
and women-led economic empowerment.
The project enabling Credit
Line on UPI for women members of SHG was launched by Shri Shivraj Singh
Chouhan, Hon’ble Union Minister of Agriculture and Farmers’ Welfare and
Minister of Rural Development at the 25th Central Level Coordination
Committee (CLCC) Meeting on Rural Development program held at Hyderabad.
Launched in
partnership with National Payments Corporation of India (NPCI), Indian Banks’
Association (IBA) and Deendayal Antyodaya Yojana – National Rural Livelihoods
Mission (DAY-NRLM), the facility extends digital credit through integration with
Credit Line on UPI. Eligible members can link their SHG Member OD account
through any UPI-enabled application to access, utilise, and repay their
overdraft digitally, make merchant QR payments using the OD credit line and
view balances & transaction history - eliminating the need for branch
visits.
Speaking
on the occasion, Shri Sanjay Mudaliar,
Executive Director, Bank of Baroda said, “Bank of Baroda is proud to pioneer the
Credit Line on UPI – Overdraft Facility for women SHG members, marking a
transformative milestone in digital financial inclusion. This initiative, in
collaboration with NPCI, IBA and DAY-NRLM, uplifts women entrepreneurs at the grassroots
level with seamless and transparent access
to formal credit. This initiative creates a scalable framework for small-ticket
lending and strengthens women-led economic growth across the country.”
Speaking on the
development, Sohini Rajola, Executive Director – Growth, NPCI said, “At NPCI, we remain
committed to expanding access to financial services by strengthening UPI
acceptance across India. The
introduction of Credit Line on UPI - OD Facility for women SHG members by Bank of Baroda marks an important step towards
enabling convenient and transparent access to formal credit. This
initiative will further empower women financially, support greater financial
resilience, and contribute to the growth of India’s inclusive digital economy”.
Key Benefits of the
Credit Line on UPI - OD Facility:
·
Digital Access to Credit for intended
beneficiaries: Enables women SHG members to seamlessly
access the ₹5,000
/- overdraft facility through bob इ
Pay/any
UPI app.
- Empowerment & Inclusion: Drives financial
empowerment, inclusion and independence of rural women.
- Creation of Credit History: Builds
a formal credit footprint, helping SHG women become eligible for higher
value loans in the future.
- Transparency & Traceability: Ensures end-to-end visibility of fund flows, utilisation
of funds, and repayments.
- Scalability: Establishes a framework that
can be extended nationwide for other inclusion-focused financial products
and small-ticket lending initiatives.
- Supports Government Priorities: Aligns
with national missions such as DAY-NRLM,
PMJDY and Digital India.