Bank of Baroda launches UPI overdraft for women SHG members

By: WE Staff | Friday, 20 March 2026

• Bank of Baroda has introduced an overdraft facility for women SHG members using UPI
• Women SHG members are eligible for an overdraft of Rs 5,000
• It is available to verified women SHG members of the Pradhan Mantri Jan Dhan Yojana accounts

Bank of Baroda has launched the 'Credit Line on UPI Overdraft (OD) Facility for Women SHg Members' as the first bank to offer this product to create this first time service. This will improve digital access to small ticket loans and help promote financial inclusion at an individual level.

Furthermore, women SHG members who have opened PMJDY Accounts can now use UPI to obtain Rs 5000 (Five Thousand Rupees) in overdrafts without having to physically go into a bank office.

This product was formally launched by Shivraj Singh Chouhan at the 25th Central Level Coordination Committee (CLCC) meeting on rural development, which was held at Hyderabad.

This initiative is a joint project with several institutions, including the National Payments Corporation of India (NPCI), Indian Banks' Association, and the Deendayal Antyodaya Yojana - National Rural Livelihoods Mission (DAY-NRLM).

As stated by Bank of Baroda, the framework will allow for future digital lending to grow throughout India.

To connect their SHG account to one of many available UPI-enabled apps, SHG members can link their overdraft facility to any of the eligible UPI (Unified Payment Interface) apps through either QR (Quick Response) or account-based payments to merchants digitally, as well as keep track of their loan amount and pay back their loans using the same means to repay who they took their loans from.

The program is an initiative of the Bank of Baroda to assist members obtains formal credit through this initiative as women borrowers, and to create a formal credit record for each borrower; thus providing greater security and confidence in the form of transparency when borrowing or repaying loans.

The Bank of Baroda said this initiative will support the Federal Government of India’s initiatives around digital payments, financial inclusion, and rural economic development; thereby promoting government’s larger goal of bringing rural people more expensive access to formal banking and/or increased formal credit availability by connecting low-value credit to the UPI digital payment infrastructure to rural residents.