Bank of Baroda launches UPI-linked overdraft facility for women Self-Help Group members
New Delhi: Bank of Baroda (BoB) has launched an overdraft (OD) facility on Credit Line through UPI for veri-fied women Self-Help Group (SHG) members holding Pradhan Mantri Jan Dhan Yojana (PMJDY) accounts, becoming the first bank to operationalise the innovation.
The initiative enables eligible beneficiaries to digitally access an overdraft of up to Rs 5,000, aimed at boosting financial inclusion and women-led economic empowerment.
The project was launched by Shivraj Singh Chouhan at the 25th Central Level Coordination Committee meeting on rural develop-ment in Hyderabad.
Developed in collaboration with National Payments Corporation of India (NPCI), Indian Banks’ Association (IBA) and Deendayal Antyodaya Yojana – National Rural Livelihoods Mission (DAY-NRLM), the fa-cility integrates credit with UPI.
SHG members can link their OD accounts to any UPI app to access, use and repay funds digitally, make QR-based merchant payments, and track balances and transactions without visiting branches.
Bank of Baroda Executive Director Sanjay Mudaliar said the initiative marks a milestone in digital finan-cial inclusion by enabling seamless, transparent access to formal credit for grassroots women entre-preneurs and creating a scalable model for small-ticket lending.
NPCI Executive Director Sohini Rajola said the move strengthens access to formal credit via UPI, en-hancing financial resilience and supporting India’s inclusive digital economy.
Key benefits include easy digital access to credit, improved financial independence for rural women, creation of formal credit histories for future borrowing, transparent fund tracking, and alignment with national missions such as PMJDY, DAY-NRLM and Digital India.
