Puisa Kotha Hunibo?

UPI has made sending money almost effortless. Now, it is also making borrowing money easier. Banks can offer pre sanctioned credit lines that customers can use through UPI, allowing them to make payments first and repay later. The Reserve Bank of India has allowed this facility and has clarified that such credit must be treated like other retail credit.On the surface, this sounds convenient. Imagine making a payment at a shop by scanning a QR code even when you do not have enough money in your bank account. A UPI credit line can provide that flexibility. For someone facing a genuine short term cash crunch, it can be useful.
But convenience is also where the danger begins.
UPI has already changed our relationship with money because spending takes only a few seconds. Adding credit to the same experience removes another barrier. When you can borrow as easily as you pay, it becomes easier to spend money you have not earned yet. The problem is not UPI itself. The problem is forgetting that credit is still debt, even when it arrives through a QR code.
Credit lines come with terms such as interest rates, credit limits and repayment periods, which vary according to the lender and product. A missed repayment can also affect your credit history. This is particularly important for young earners. A Rs. 5,000 purchase may not feel expensive when you only have to think about paying it later. But several such purchases can turn into a large bill at the end of the month.
Before using a UPI credit line, ask yourself one simple question: Would I still make this purchase if I had to pay for it from my bank account today? If the answer is no, borrowing may not be the solution. Use credit for genuine needs and only when you have a clear repayment plan. Do not treat an available credit limit as extra income.
UPI made digital payments incredibly convenient. Credit lines could make borrowing equally convenient. That can be useful, but it also demands more discipline.
The golden rule remains unchanged: just because you can borrow it does not mean you can afford it.
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Paweü Kayina
Founder Moneybar | Building NE India’s Finance Community