ICICI Bank Becomes India¡¯s First Lender To Introduce EMI Facility On UPI Payments

Last week, the Reserve Bank of India (RBI) allowed the operation of pre-sanctioned credit lines at banks through UPI. This has been seen as a move to allow UPI to mimic credit cards.

And now, a week after the RBI¡¯s announcement in the MPC meeting, where it also kept the repo rate unchanged after six consecutive rate hikes, one of India¡¯s biggest lenders has taken a step towards enhancing UPI¡¯s features.

ICICI Bank Introduces EMIs On UPI Payments

indiatimes

ICICI Bank has introduced an EMI facility for Unified Payments Interface (UPI) payments made by scanning QR codes, the bank said in a press release on April 11, 2023.

Now, ICICI Bank customers can go to a store, scan the QR code, and pay in easy instalments. Do note that customers who are eligible for ICICI Bank PayLater, the bank's 'buy now, pay later' service, can avail of the EMI facility for UPI payments. The transaction amount has to be more than Rs 10,000 to be converted into EMIs. ICICI Bank users will get three instalment options to choose from: three months, six months, and nine months, as per an ET report.

The newly launched PayLater EMI facility for UPI payments can be used to purchase electronic items, groceries, and apparel. It can also be used for travel and hotel bookings. However, the EMI facility for UPI payments is not currently available for online shopping. "The EMI facility for PayLater will shortly be extended for online shopping as well," the ICICI Bank said.

Also Read: Explained: Why RBI Has Decided To Launch UPI-Based Coin Vending Machines

First Bank To Do So

ET

ICICI Bank is the first lender in the country to introduce this feature for its customers. In a press release, the bank stated, ¡°This first-of-its-kind facility enhances affordability for lakhs of the bank¡¯s customers, as they can now instantly buy products or services just by scanning the required merchant QR code at a store and making payments in EMIs.¡±

As per a Business Standard report, Bijith Bhaskar, Head-Digital Channels & Partnership, ICICI Bank, said, "We have seen that maximum payments these days are made through UPI. In addition, we have observed that customers are increasingly opting for UPI transactions from PayLater, the bank¡¯s ¡®buy now, pay later¡¯ service".

"Combining these two trends, we are introducing the facility of instant EMI for UPI payments done through PayLater. With this facility, lakhs of our customers making UPI payments by scanning a merchant QR code can shop for mid- to high-value items and pay in easy EMIs", he said.

Also Read: Explained: How RBIs Digital Rupee (e?) Is Different From UPI

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