RBI’s pause in the repo rate is a prudent move that will help stimulate the credit flow and make lenders resilient from experiencing anticipated demand shocks. At the same time, the indication towards an accommodative stance shows the central bank is committed to taming inflation and ensuring India’s financial system is not exposed to extraordinary factors.

The announcement made by RBI on permitting the operations of pre-sanctioned credit lines by banks through UPI is a transformative step towards a comprehensive digital economy. It would provide greater financial flexibility and convenience to borrowers. Overall, the expansion of UPI’s potential is a major milestone that is set to unleash a plethora of benefits. This progressive step will not only enhance the convenience and flexibility of financial transactions but also pave the way for the further growth of the UPI platform. With the added feature of pre-sanctioned credit lines, we can expect a surge in transaction volumes and a more seamless user experience, increasing the adoption of digital payments across the country.”