Credit card users will soon be able to link their cards with the unified payments interface (UPI), the Reserve Bank of India announced on Wednesday. The move will enable more people to make payments using the popular UPI platform. "It is proposed to allow linking of credit cards to UPI," RBI Governor Shaktikanta Das said while announcing the regulatory moves, along with the bi-monthly policy review. Das said the new arrangement is expected to provide more avenues and convenience to the customers in making payments through the UPI platform.
What it means for credit card users
At present, UPI facilitates transactions by linking savings or current accounts through users' debit cards. It is being said that this move will further facilitate recurring payments like subscriptions, insurance premia, education fee, etc. of larger value. "To begin with, the RuPay credit cards will be linked to the UPI platform. This will provide additional convenience to users and enhance the scope of digital payments," Das said. The linking will begin with RuPay credit cards issued by the RBI-promoted National Payments Corporation of India (NPCI).
The decision comes as digital transactions are witnessing an exponential rise in India and abroad. As per data shared by RBI, UPI has become the most inclusive mode of payment in India, with over 26 crore unique users and 5 crore merchants onboarded on the platform. In May, 594.63 crore transactions amounting to ₹10.40 lakh crore were processed through UPI, Das informed.
Non-cash payments using modes like UPI will account for 65 per cent of all the transactions by 2026 against the 40 per cent level estimated at present, a report by consulting firm BCG stated last week.
{{/usCountry}}Non-cash payments using modes like UPI will account for 65 per cent of all the transactions by 2026 against the 40 per cent level estimated at present, a report by consulting firm BCG stated last week.
{{/usCountry}}These banks provide RuPay credit cards
As per Livemint report, these are some banks that allow its customers to have RuPay credit cards: Punjab National Bank (PNB), IDBI Bank (IDBI), Union Bank, State Bank of India (SBI), Bank of Baroda, Federal Bank and Saraswat Co-operative Bank. “RuPay also provides co-brand cards with a few banks like HDFC Bank, SBI, PNB and Union Bank,” the Livemint report added.
Earlier on Wednesday, RBI increased the repo rate (or lending rate) by 50 basis points to 4.9 per cent. This is the second hike in the repo rate in five weeks.
(With PTI and ANI inputs)