EMI on UPI Payments: Now ICICI Bank customers can scan a QR code and pay via UPI EMI

ICICI Bank has introduced equated monthly instalment (EMI) facility for Unified Payments Interface (UPI) payments made by scanning QR codes, the bank said in a press release on April 11, 2023.

Now, ICICI Bank customers can go to a store, scan the QR code and pay in easy instalments. Do note that the customers who are eligible for ICICI Bank PayLater, the bank's 'buy now, pay later' service can avail of the EMI facility for UPI payments. The transaction amount needs to be more than Rs 10,000 to convert it into EMIs. ICICI Bank users will get three instalment options of three months, six months, and nine months to choose from.

The newly launched PayLater EMI facility for UPI payments can be availed for purchasing electronic items, groceries, and apparel. It can also be used for travel and hotel bookings. However, the EMI facility for UPI payments is not currently available for online shopping. "The EMI facility for PayLater will shortly be extended for online shopping as well," the ICICI Bank said.


Also Read: Which UPI payments will attract interchange fee? Will you have to bear the cost?

ICICI PayLater EMI for UPI payments: How will it work?
For instance, you are an ICICI Bank customer and you go to a shop to buy groceries. Now, if the amount is more than Rs 10,000 and you are paying it through the iMobile Pay app, you can choose to scan the QR code and opt for the PayLater EMI option. You have to select a tenure ranging from three months, six months, and nine months. Once you confirm the payment, your transaction will be complete.

The PayLater dues will be debited automatically from your ICICI Bank Savings Account, according to the ICICI Bank website.

Launched in 2018, PayLater is a digital credit product of ICICI Bank. It is available to a set of customers who have pre-approved offers.

"With this facility, lakhs of our customers making UPI payments by scanning a merchant QR code can shop for mid to high-value items and pay in easy EMIs. We believe, this facility provides immense convenience and improves the affordability of our customers, as they can purchase high-value products on EMIs in a secure, instant, and digital manner," said Bijith Bhaskar, Head- of Digital Channels & Partnership, ICICI Bank.

RBI allows pre-sanctioned credit lines at banks through UPI
The Reserve Bank of India (RBI) has allowed the operation of pre-sanctioned credit lines at banks through UPI. "Scope of UPI to be expanded, by permitting operation of pre-sanctioned credit lines at banks, through UPI. This will further encourage innovation," RBI Governor Shaktikanta Das said while announcing the decisions of the bi-monthly monetary policy committee meeting on April 6, 2023.

"This move will further expand the scope of UPI by permitting the operation of pre-sanctioned credit lines at banks through UPI; thereby, fostering innovations in digital financing. While UPI transactions were until now based on deposit accounts at banks, the access to UPI transactions has now been extended, by enabling transfer to/from pre-sanctioned credit lines at banks, in addition to deposit accounts. This will further give ease of personal financing for the customers and make the progressive UPI a more popular choice for transactions in the market. On the whole, the initiative is a great move towards financial inclusivity," said Mahesh Shukla CEO & Founder of PayMe.