Bank of Baroda Launches India’s First Credit Line on UPI OD Facility for Women SHGs
The initiative creates a scalable framework for nationwide expansion of small-ticket digital lending
Bank of Baroda has become the first bank in India to operationalise a Credit Line on UPI-based Overdraft (OD) facility for women Self-Help Group (SHG) members, marking a major step forward in digital financial inclusion and grassroots credit access.
The initiative enables verified women SHG members holding Pradhan Mantri Jan Dhan Yojana (PMJDY) accounts to access a ₹5,000 overdraft facility digitally via UPI, eliminating the need for physical branch visits.
Launched at National Rural Development Platform
The project was formally launched by Shivraj Singh Chouhan during the 25th Central Level Coordination Committee (CLCC) Meeting on Rural Development held in Hyderabad.
Developed in collaboration with key institutions including National Payments Corporation of India, Indian Banks’ Association, and Deendayal Antyodaya Yojana – National Rural Livelihoods Mission, the initiative creates a scalable framework for nationwide expansion of small-ticket digital lending.
How the Facility Works
Eligible SHG members can:
- Link their OD account to any UPI-enabled app (including bob इ Pay)
- Access and utilise overdraft funds instantly
- Make merchant QR payments using the credit line
- Track balances and transaction history digitally
- Repay seamlessly without visiting bank branches
Leadership Insights
Sanjay Mudaliar, Executive Director, Bank of Baroda, described the move as a milestone:
“This initiative marks a transformative step in digital financial inclusion, empowering women entrepreneurs at the grassroots with seamless and transparent access to formal credit.”
Sohini Rajola, Executive Director – Growth at National Payments Corporation of India, added:
“The introduction of Credit Line on UPI for SHG members enhances financial access, strengthens resilience, and supports India’s inclusive digital economy.”
Key Benefits of the Initiative
- Digital Credit Access: Instant ₹5,000 OD facility via UPI apps
- Women Empowerment: Strengthens financial independence of rural women
- Credit History Creation: Builds formal credit footprints for future loans
- Transparency: Full visibility of fund usage and repayments
- Scalability: Model can be replicated nationwide
- Policy Alignment: Supports PMJDY, Digital India, and DAY-NRLM goals
A Big Shift in Financial Inclusion
This innovation represents a convergence of digital payments and formal credit, bringing structured lending into the everyday UPI ecosystem. By targeting women SHG members, it directly supports last-mile financial inclusion and women-led economic growth.
With this launch, Bank of Baroda has effectively set the stage for UPI-powered micro-credit at scale, potentially reshaping how small-ticket loans are delivered across rural India.
