On 20 March 2026, Bank of Baroda launched a credit facility on the UPI platform for women Self-Help Group (SHG) members. The scheme allows eligible users, especially PM Jan Dhan account holders, to access an overdraft of up to ₹5,000 directly through UPI apps without visiting bank branches. This initiative aims to promote financial inclusion, empower rural women, and provide easy access to formal credit using digital payment systems.
Bank of Baroda introduced a new credit facility on 20 March 2026, enabling women Self-Help Group (SHG) members to access loans through the UPI platform. This initiative allows eligible users, mainly those holding Pradhan Mantri Jan Dhan Yojana (PMJDY) accounts, to avail an overdraft facility of up to ₹5,000 directly through mobile applications.
This is the first time in India that a bank has operationalised a credit line linked to UPI. The facility was launched during the 25th Central Level Coordination Committee (CLCC) meeting held in Hyderabad. It has been implemented in collaboration with:
How it works:
Background:
SHGs play a major role in rural credit systems but often depend on informal loans.
Impact:
1.Which bank launched UPI-based credit facility for women SHGs?
A) SBI
B) Bank of Baroda
C) HDFC Bank
D) ICICI Bank
Answer: B
2.What is the overdraft limit under this scheme?
A) ₹2,000
B) ₹3,000
C) ₹5,000
D) ₹10,000
Answer: C
3.Which organisation operates UPI in India?
A) RBI
B) SEBI
C) NPCI
D) NABARD
Answer: C
4.PMJDY is related to:
A) Insurance
B) Banking inclusion
C) Taxation
D) Agriculture
Answer: B
5.SHG stands for:
A) Small Help Group
B) Self Help Group
C) Social Help Group
D) State Help Group
Answer: B
Q1. What is the main objective of PMJDY?
Answer: Financial inclusion
Q2. Which body manages UPI in India?
Answer: NPCI
Students often confuse UPI payments with UPI credit line. This scheme combines both payments and credit.