The project, in partnership with NPCI, IBA and DAY-NRLM, creates a scalable model for nationwide expansion of inclusive digital small-ticket lending
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.