The facility allows eligible women with Pradhan Mantri Jan Dhan Yojana (PMJDY) accounts to access up to ₹5,000 as an overdraft, which can be used directly through UPI apps for payments, transfers and repayments without visiting a bank branch. Users can also track balances and transaction history digitally.
The initiative, launched in partnership with National Payments Corporation of India, Indian Banks Association and the Deendayal Antyodaya Yojana – National Rural Livelihoods Mission, aims to expand access to formal credit among underserved rural borrowers.
The rollout comes as policymakers push for greater financial inclusion and digital lending adoption, particularly among women-led self-help groups that often face limited access to institutional credit. By linking overdraft facilities to UPI, the model enables small-ticket, short-term borrowing with greater transparency and ease of use.
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Beyond immediate liquidity, the facility is also expected to help users build a formal credit history, improving their eligibility for higher-value loans over time. The framework is seen as scalable and could be expanded to other borrower segments as digital credit ecosystems deepen.