Finezza.in Publishes LMS Readiness Framework for UPI Line of Credit as NBFCs Await RBI Access

MUMBAI, India - Aug. 31, 2026 - PRLog -- Finezza Information Technologies Pvt. Ltd., a Navi Mumbai-based lending software company, has published an operational readiness framework for non-banking financial companies (NBFCs) preparing to offer line of credit on the Unified Payments Interface (UPI)  a product currently limited to scheduled commercial banks and small finance banks in India.

RBI extended pre-sanctioned UPI credit lines to scheduled commercial banks in September 2023 and to small finance banks in December 2024. NBFCs remain excluded. The Finance Industry Development Council (FIDC) submitted a formal representation to RBI in September 2025 seeking access, citing NBFCs' last-mile reach in underserved and new-to-credit segments.

NPCI and RBI data for June 2026 put UPI transaction volumes at ₹28.02 lakh crore across 22.7 billion transactions in a single month,  a scale of real-time payment activity most NBFCs have not previously operated at.

The framework notes that most NBFC lending infrastructure isn't architecturally ready. Term-loan and standard overdraft systems assume fixed disbursement and manual drawdowns. UPI line of credit consumes credit at the moment of transaction, requiring the remaining limit to update within seconds, with no EMI calendar governing repayment.

Finezza.in's framework identifies four requirements a loan management system must satisfy: real-time dynamic limit management at the point of transaction rather than batch end-of-day updates; a billing engine supporting variable cycles and minimum-amount-due tracking instead of fixed EMI schedules; daily interest accrual on fluctuating outstanding balances rather than static principal; and compliance architecture aligned with RBI's digital lending guidelines on direct-to-bank fund flows and accurate bureau reporting of revolving utilization.

The full framework is available at https://finezza.in/blog/upi-line-of-credit-nbfc-lms-readiness/.

Request a demo at https://finezza.in/.