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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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