RuPay introduces UPI payments through its credit cards. Details here
By linking RuPay credit card on UPI, now the customers can benefit from increased opportunity to use their credit cards while the merchants will benefit from the increase in consumption by being a part of the credit ecosystem with the acceptance of credit cards using QR codes, the NPCI said in a statement.
The National Payments Corporation of India has announced a feature enabling linkage of RuPay credit card to the unified payments interface (UPI). By linking RuPay credit card on UPI, now the customers can benefit from increased opportunity to use their credit cards while the merchants will benefit from the increase in consumption by being a part of the credit ecosystem with the acceptance of credit cards using QR codes, the NPCI said in a statement.
The RuPay credit card will be linked to a virtual payment address, also known as the UPI ID, and will directly enable secure payment transactions. The customers of Punjab National Bank, Union Bank of India, and Indian Bank will be the first to be able to use RuPay Credit Card on UPI with BHIM App.
Till now, only debit cards were allowed to be linked to the UPI IDs. With the new scheme, the RuPay users will have a benefit to use their credit cards for UPI payments at merchant outlets.
Another important feature launched by the NPCI is the UPI Lite, which will provide users with faster low-value transactions. In a statement, the NPCI said that India is thriving on low-value UPI payments with 50 per cent of the transactions through UPI below ₹200.
“With UPI Lite enabled on BHIM App, users will be able to make small-value transactions in a near-offline mode. UPI Lite will reduce the debit load on the core banking system, thereby improving the success rate of transactions further, enhancing the user experience, and taking us one step closer to processing a billion transactions a day on the UPI platform,” the NPCI statement said.
The upper limit of the UPI Lite payment transaction will be ₹200 while the total limit of UPI Lite balance for an on-device wallet will be ₹2,000 at any point in time.
Eight banks are live with the feature including Canara Bank, HDFC Bank, Indian Bank, Kotak Mahindra Bank, Punjab National Bank, State Bank of India Union Bank of India and Utkarsh Small Finance Bank, the statement said.
Union finance minister Nirmala Sitharaman said the value of UPI transactions crossed ₹10.62 lakh crore in July through 6.28 billion transactions.