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    Question

    What recent change did the RBI authorize for Small

    Finance Banks (SFBs) regarding UPI? 
    A Blocking SFBs from issuing credit lines via UPI Correct Answer Incorrect Answer
    B Allowing SFBs to issue pre-approved credit lines linked to UPI Correct Answer Incorrect Answer
    C Permitting SFBs to use UPI only for deposits, not credit Correct Answer Incorrect Answer
    D Requiring SFBs to offer interest-free UPI credit Correct Answer Incorrect Answer
    E Mandating SFB UPI credit interest capped at 12% Correct Answer Incorrect Answer

    Solution

    In February 2025, the RBI extended UPI’s functionality to include pre-sanctioned credit lines from SFBs. These allow instant credit disbursal via UPI apps, expanding digital lending access to users. 

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