New Delhi: The Reserve Bank of India (RBI) on Wednesday proposed linking credit cards to UPI payments, Governor Shaktikanta Das said. While announcing a hike in the repo rate, RBI Governor Das said that Rupay credit cards will be linked to the UPI platform. This will provide additional convenience to users and expand the reach of digital payments.Also read – Using a credit card can sometimes lead to unwanted debt, penalties: here’s how to avoid them
Speaking on UPI Payments, Governor RBI Das said, “UPI has become the most inclusive payment method in India with over 26 crore unique users and five crore merchants on the platform. the past few years have been unprecedented, with many other countries engaging with us to adopt similar methods in their countries.”
— Tamal Bandyopadhyay (@TamalBandyo) June 8, 2022
UPI with credit card is awesome. I always wanted this. Convenience of UPI but with credit card instead of bank account. #rbipolicy
— Anupam Gupta (@b50) June 8, 2022
RBI on linking credit cards to UPI payments:
- Rupay credit cards will be linked to the UPI platform, the RBI said in a statement.
- This will provide additional convenience to users and expand the reach of digital payments.
- The RBI Governor said that to begin with, Rupay credit cards issued by the National Payments Corporation of India (NPCI), promoted by the RBI, will be activated with this feature, and the feature will be made available after the development of the system.
- The new arrangement is expected to provide more opportunities and convenience for customers to make payments through the UPI platform, RBI Governor Das said.
- In May, 594.63 crore transactions worth Rs 10.40 lakh crore were processed through UPI, Das said.
- The interoperability of prepaid payment instruments (PPIs) has also made it easier for PPIs to access the UPI payment system to initiate transactions, Das said.
So far, only debit cards have been linked to the UPI platform.