Bank of Baroda Introduces ₹5,000 UPI Credit Line for Women SHGs

Bank of Baroda has introduced an overdraft facility linked to the Unified Payments Interface (UPI) for women Self-Help Group (SHG) members. As per PTI reports, the bank said it is the first to operationalise a credit line on UPI for this segment.  

The offering targets account holders under the Pradhan Mantri Jan Dhan Yojana (PMJDY), with a focus on rural and low-income users. 

Overdraft Access Through UPI 

Eligible customers can access an overdraft of up to ₹5,000. The credit can be used directly via UPI applications for merchant payments, fund transfers, and repayments.  

The process removes the need for branch visits, with transactions carried out entirely through mobile platforms. Users can also check balances and track transaction history digitally. 

Collaboration with Ecosystem Entities 

The rollout has been implemented in partnership with the National Payments Corporation of India (NPCI), the Indian Banks Association (IBA), and the Deendayal Antyodaya Yojana – National Rural Livelihoods Mission (DAY-NRLM).  

These entities are involved in expanding digital payments infrastructure and supporting financial access among rural households. 

Focus on Inclusion and Access 

The initiative comes amid continued policy focus on improving financial inclusion and widening access to formal credit.  

Women-led SHGs remain a key part of rural credit networks but often depend on informal borrowing due to limited access to banks. The UPI-linked structure is intended to provide a formal channel for small, short-term credit needs. 

Scope for Credit History Creation 

The facility is also expected to support the creation of formal credit records for users. Regular usage and repayment may help improve eligibility for higher-value loans over time. 

The model is for small-ticket borrowing and could be extended to other segments as digital lending systems expand. 

Read More: Vedanta Share Price Falls 5% Ahead of Board Meet; Record Date March 27, ₹23 Dividend Paid So Far! 

Bank of Baroda Share Price Performance  

As of March 23, 2026, 12:35 pm, Bank of Baroda Ltd share price stood at ₹268.70, a 4.02% decrease from the previous closing price. 

Conclusion 

The UPI-linked overdraft introduces a digital route for accessing small-value credit among SHG members. It combines payments and borrowing within a single interface, with an emphasis on access and traceability. 

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