Mumbai: Bank of Baroda, India’s International Bank, has announced the launch of Credit Line on UPI, introducing an Overdraft (OD) facility for verified women Self-Help Group (SHG) members holding Pradhan Mantri Jan Dhan Yojana (PMJDY) accounts.
With this move, Bank of Baroda becomes the first bank in India to operationalise Credit Line on UPI, enabling seamless access to small-ticket digital credit.
The Credit Line on UPI initiative allows eligible SHG members to access an overdraft facility of up to ₹5,000 digitally, strengthening financial inclusion and promoting women-led economic empowerment across rural India.
The project enabling Credit Line on UPI for women SHG members was formally launched by Shivraj Singh Chouhan, Union Minister of Agriculture and Farmers’ Welfare and Minister of Rural Development, during the 25th Central Level Coordination Committee (CLCC) Meeting on Rural Development held in Hyderabad.
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Developed in partnership with the National Payments Corporation of India (NPCI), Indian Banks’ Association (IBA), and Deendayal Antyodaya Yojana – National Rural Livelihoods Mission (DAY-NRLM), the Credit Line on UPI facility integrates digital credit directly with UPI infrastructure.
This enables eligible users to link their SHG Member OD accounts with any UPI-enabled application.
Through Credit Line on UPI, beneficiaries can digitally access, utilise, and repay their overdraft, make merchant QR code payments using the OD credit line, and track balances and transaction history—eliminating the need for physical branch visits.
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.”
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.”
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Key Benefits of Credit Line on UPI – OD Facility
- Digital Access to Credit: Enables women SHG members to seamlessly access the ₹5,000 overdraft facility via bob World/any UPI app
- Empowerment & Inclusion: Promotes financial independence and inclusion of rural women
- Creation of Credit History: Helps beneficiaries build a formal credit footprint through usage of Credit Line on UPI, enabling access to higher-value loans in the future
- Transparency & Traceability: Ensures complete visibility of fund utilisation and repayments
- Scalability: Establishes a nationwide replicable framework for small-ticket lending
- Alignment with Government Initiatives: Supports national missions such as DAY-NRLM, PMJDY, and Digital India
The launch marks a significant step toward building an inclusive, digital-first financial ecosystem, especially for women at the grassroots level.
