Bank of Baroda has become the first bank in India to launch an Overdraft (OD) Facility on Credit Line via UPI for verified women Self-Help Group (SHG) members holding Pradhan Mantri Jan Dhan Yojana (PMJDY) accounts. The initiative, unveiled at the 25th Central Level Coordination Committee (CLCC) meeting in Hyderabad, marks a significant step in strengthening financial inclusion and empowering women-led economic growth.
The new facility provides eligible SHG members with ₹5,000 overdraft credit, accessible directly through bob इ Pay or any UPI-enabled app. Users can link their OD accounts to make merchant QR payments, view balances, track transactions, and repay digitally — eliminating the need for branch visits.
The project has been launched in partnership with the National Payments Corporation of India (NPCI), the Indian Banks’ Association (IBA), and the Deendayal Antyodaya Yojana – National Rural Livelihoods Mission (DAY-NRLM).
Together, the institutions aim to create a scalable model for small-ticket lending nationwide, aligning with government priorities under Digital India, PMJDY, and DAY-NRLM.
Sohini Rajola, executive director – Growth at NPCI, added: “The introduction of Credit Line on UPI – OD Facility for women SHG members marks an important step towards enabling convenient and transparent access to formal credit. This will empower women financially and contribute to India’s inclusive digital economy.”
Key benefits
* Digital Access: Rs 5,000 overdraft available instantly via UPI apps.
* Empowerment: Promotes independence and inclusion for rural women.
* Credit History: Builds a formal footprint, enabling access to larger loans.
* Transparency: Ensures traceability of fund flows and repayments.
* Scalability: Provides a framework for nationwide expansion.
