Mumbai, March 24 (MExN): Bank of Baroda has launched an overdraft (OD) facility on Credit Line through UPI for verified women Self-Help Group (SHG) members holding Pradhan Mantri Jan Dhan Yojana (PMJDY) accounts, becoming the first bank in the country to operationalise the system.
According to a press release issued by the bank, the initiative enables eligible women SHG members to access a digital overdraft facility of ₹5,000 through UPI-enabled applications, without visiting a bank branch. The facility allows users to link their SHG OD accounts with UPI apps to access, utilise and repay the credit digitally, including making merchant QR code payments and tracking transactions.
The project was launched by Shivraj Singh Chouhan during the 25th Central Level Coordination Committee (CLCC) meeting on rural development held in Hyderabad.
The bank stated that the initiative has been rolled out in partnership with National Payments Corporation of India, Indian Banks’ Association, and Deendayal Antyodaya Yojana – National Rural Livelihoods Mission, and is aimed at creating a scalable model for inclusive, small-ticket digital lending across the country.
Highlighting the intent of the programme, the release noted that the facility is designed to improve financial inclusion and support women-led economic activity in rural areas. It stated that the digital credit system would help SHG members build a formal credit history, making them eligible for higher-value loans in the future.
The bank further stated that the system ensures transparency and traceability of fund flows, allowing users to monitor utilisation and repayments in real time. It added that the model could be expanded nationwide and adapted for other inclusion-focused financial products.
The initiative aligns with ongoing national programmes such as the Pradhan Mantri Jan Dhan Yojana, DAY-NRLM, and the Digital India mission, the release added.
