HDFC Bank taps Zeta’s DCaaS solution to offer Credit Line on UPI

By Gloria Mathias

Zeta, a provider of next-gen banking technology to financial institutions globally, has announced its partnership with HDFC Bank to power its Credit Line on UPI (CLOU) offerings.

Powered by Zeta’s Digital Credit as a Service (DCaaS) solution, the partnership will empower HDFC Bank to launch innovative credit products on NPCI’s CLOU scheme.

Rajanish Prabhu, Senior Executive Vice President of HDFC Bank, said, “HDFC Bank strongly believes in FinTech partnerships that bring together the strengths of both entities. Our association with Zeta includes working together on PayZapp, the bank’s payment app, the acceptance of which continues to grow at a very rapid pace. We are glad to develop the Credit Line on UPI (CLOU) offering with Zeta, enabling our customers to enjoy the benefits of an affordability program combined with the ease of doing a UPI transaction.

NPCI announced the Credit Line on UPI scheme late last year. It allows banks to connect pre-approved credit lines directly to the UPI user base, facilitating credit access for individuals and businesses while offering banks access to a much wider audience through the established UPI ecosystem.

Ramki Gaddipati, CEO APAC, Global CTO & Co-Founder, Zeta, said, “We are grateful for the trust reposed in us by HDFC Bank for this important initiative. CLoU is a credit superhighway, and our solution is architected to leverage its innovative capabilities across the entire credit distribution lifecycle spanning underwriting, origination, distribution, usage, repayments, collections, and more. And, unlike alternative approaches that rely on bolting on capabilities to an existing UPI switch or an LMS, Zeta’s solution has been carefully engineered ground up as a UPI-first, mobile-first, and cloud-native credit products ecosystem.”

Zeta’s DCaaS is a ready-to-deploy, fully managed offering with pre-integrated capabilities across origination, processing, lifecycle management, digital experiences, and data analytics. It allows banks to launch rapidly in under six months and choose from a catalogue of more than a dozen innovative credit products spanning both retail and SME lending use cases.

As part of this partnership, Zeta will provide HDFC Bank with a next-gen solution that includes the technology stack and various managed services.