Bank of Baroda has introduced an overdraft (OD) facility on Credit Line via UPI for verified women Self-Help Group (SHG) members, becoming the first bank in the country to operationalise such a feature, it said in a recent press release.
The initiative enables eligible beneficiaries who hold Pradhan Mantri Jan Dhan Yojana (PMJDY) accounts to access and avail a ₹5,000 overdraft digitally. Furthermore, this is a move aimed at boosting and expanding credit availability for self-help groups.
Digital credit availability for rural women
This project was launched by Shivraj Singh Chouhan at the 25th Central Level Coordination Committee meeting on rural development in Hyderabad. It has been developed and evolved in collaboration with the National Payments Corporation of India, the Indian Banks’ Association and DAY-NRLM. This facility aims to integrate small ticket credit directly into systems.
Using this, eligible SHG members can link their overdraft accounts to any UPI-enabled application, thereby allowing them to avail funds, make merchant QR payments, and monitor balances and transactions without visiting bank branches. The focus is on making the account holder experience seamless and pleasant.
Financial inclusion in spotlight
Commenting on the initiative, Sanjay Mudaliar, Executive Director, Bank of Baroda, said, “Bank of Baroda is proud to pioneer the on UPI – Overdraft Facility for women SHG members, marking a transformative milestone in digital financial inclusion. This initiative uplifts women entrepreneurs at the grassroots level with seamless and transparent access to formal credit.”
Sohini Rajola, Executive Director, Growth, NPCI, added, “The introduction of Credit Line on UPI… marks an important step towards enabling convenient and transparent access to formal credit… and will further empower women financially.”
Scalable lending model
The bank said the initiative creates a scalable framework for nationwide expansion of inclusion-focused lending, aligning with government programmes such as PMJDY and Digital India while supporting women-led.
Key features
- Users will get digital access to an overdraft of ₹5,000 through UPI applications.
- Boost to financial inclusion, credit distribution and women’s empowerment.
- Creation of a formal for beneficiaries that can foster better borrowing practices.
- Transparent and clear tracking of fund usage and repayments.
- Scalable model for wider small-ticket lending initiatives.
The initiative is aimed at deepening digital financial penetration and boosting the availability of credit for women in rural areas.
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