Correct option is C
The correct answer is: (c) Unified Payments Interface (UPI)
Explanation:
In December 2024, the Reserve Bank of India (RBI) allowed Small Finance Banks (SFBs) to offer pre-sanctioned credit lines through the Unified Payments Interface (UPI).
Prior to this, in September 2023, RBI had permitted Scheduled Commercial Banks to offer similar credit facilities via UPI.
Information Booster:
• This move is expected to benefit 'new-to-credit' customers, providing them with easier access to formal credit channels.
• UPI is a real-time payment system developed by the National Payments Corporation of India (NPCI), facilitating instant fund transfers between bank accounts.
• Supports financial inclusion and credit penetration.
• UPI now supports both payment and credit functions.
• Initiative aligns with Digital India and fintech innovation.
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