If you use UPI then there is good news for you. A big change is going to happen regarding overdraft facility through UPI. Under this the credit line will be directly linked to UPI. After which you will be able to easily withdraw money from your loan account through UPI. The National Payments Corporation of India (NPCI) has issued a circular on July 10 2025 in which new guidelines have been issued for linking pre-approved credit lines to UPI. The circular states that from next month ie August you will be able to use the amount of the banks pre-approved credit line directly through UPI. Till now only purchasing goods was allowed. Now not only will payments be made at shops through UPI from the credit line amount but the feature of withdrawing cash sending money to someone and making payments to small shopkeepers will also be provided. Will Loan account be directly linked to UPI? Under the new rule UPI users will now be able to link fixed deposits shares bonds property gold or personal and business loan overdrafts to UPI and use them. In simple words now you will be able to make payments directly from the loan account through third party UPI apps like Paytm PhonePe Google Pay. From when will this service be available? NPCI has instructed all UPI bank members and credit line providers to implement this facility by 31 August 2025. In such a situation crores of users using UPI will get its benefit. What is a credit line? A credit line is a type of loan which is approved by a bank or any financial institution on the basis of the users income and credit score. You can link the credit line account approved by the bank to UPI and use it.