Fintech platform BharatPe has launched a digital credit-on-UPI payment service called BharatPe Flex in partnership with YES Bank. The new solution allows eligible customers to access a pre-approved credit line for their daily Unified Payments Interface (UPI) transactions. This partnership aims to enhance credit accessibility and offer a seamless, short-term financing option directly through the UPI network.
Core Features of BharatPe Flex
The BharatPe Flex service offers a digital credit line that functions alongside traditional UPI payments. Eligible users can complete their transactions using credit rather than direct bank account debit. The system provides an interest-free period of up to 45 days on all spends, provided the user pays the full outstanding balance by the due date. For longer-term repayment requirements, customers can convert their purchases into flexible Equated Monthly Instalments (EMIs) spanning a tenure of 3 to 12 months.
To get started, users can complete the onboarding process inside the BharatPe application. The digital verification relies on Aadhaar-based Know Your Customer (KYC) authentication and credit assessments, with approvals processed within three minutes. Once activated, the pre-approved credit line appears as an eligible payment source whenever a user scans a merchant QR code or processes online payments.
Regulatory Context and Institutional Roles
The integration of credit with the UPI ecosystem operates under a regulatory framework managed by the Reserve Bank of India (RBI) and the National Payments Corporation of India (NPCI). The RBI formally authorized the linking of pre-sanctioned credit lines to UPI in a directive issued on September 4, 2023. Under this framework, scheduled commercial banks can offer credit lines to consumers, which are then linked to payment applications.
In August 2025, the NPCI updated these guidelines to mandate purpose-driven monitoring. This system ensures that credit-on-UPI spends align with the specific intent (such as personal use, education, or business expenses) for which the loan was approved.
Several key financial and technology entities support this ecosystem:
| Organization | Key Role and Details | Headquarters and Leadership |
|---|---|---|
| Reserve Bank of India (RBI) | The central bank and monetary authority of India, which regulates credit systems and payment networks. Established in 1935 under the Reserve Bank of India Act, 1934. | Headquarters: Mumbai |
| National Payments Corporation of India (NPCI) | The umbrella organisation operating retail payment and settlement systems in India. Established in 2008 under the Payment and Settlement Systems Act, 2007. | Headquarters: Mumbai |
| YES Bank | The private sector banking partner providing the credit infrastructure and capital backend for BharatPe Flex. Established in 2004. | Headquarters: Mumbai, MD and CEO: Vinay Muralidhar Tonse |
| BharatPe | The financial technology platform providing the digital customer interface and onboarding systems. Established in 2018 under the corporate name Resilient Innovations Private Limited. | Headquarters: Gurugram, CEO: Nalin Negi |
Ecosystem Impact of Credit-on-UPI
The rollout of BharatPe Flex signals a shift in retail credit delivery across India. By combining the convenience of UPI with credit lines, the service reduces dependency on physical credit cards and simplifies access to formal credit. For small businesses and merchants, this integration provides an immediate liquidity option to manage cash flow fluctuations.
For the broader banking sector, this model lowers customer acquisition and onboarding costs through fully digital workflows. It also allows banks to access transactional data, enabling better risk assessment and underwriting. By linking credit limits to transaction histories, financial institutions can offer more tailored products to underserved segments.
Key Takeaways
- BharatPe Flex is a credit-on-UPI solution launched in partnership with YES Bank to offer pre-approved credit lines for daily transactions.
- The service provides users with an interest-free period of up to 45 days and the option to convert spends into instalments ranging from 3 to 12 months.
- The regulatory framework for linking pre-sanctioned credit lines to UPI was first introduced by the Reserve Bank of India (RBI) on September 4, 2023.
- The National Payments Corporation of India (NPCI) was established in 2008 under the Payment and Settlement Systems Act, 2007.
- YES Bank was established in 2004 with headquarters in Mumbai, and its Managing Director and Chief Executive Officer is Vinay Muralidhar Tonse.
- BharatPe was founded in 2018 under the corporate name Resilient Innovations Private Limited, with headquarters in Gurugram and Nalin Negi serving as CEO.
