RBI Allows Linking Of Credit Card To UPI Platforms; All You Need To Know

Credit card holders have been offered a significant reprieve by the RBI. Credit cards would be linked to the Unified Payments Interface(UPI), according to RBI Governor Shaktikanta Das . This decision will help around 7.5 crore credit card members in the country.

The Rupay credit card will be available soon

Credit card holders have been offered a significant reprieve by the RBI. Rupay credit card will be launched by RBI Governor Shaktikanta Das.

Governor Shaktikanta Das, speaking on the Monetary Policy Committee’s (MPC) decisions, stated that only the Rupay Credit Card will be linked to UPI at first. Later, all credit cards will be included in its scope. UPI payments are now made mostly with debit cards linked to the consumer’s bank account.

It will help in expanding the scope of UPI

According to the RBI, the UPI platform has 26 crore unique users and five crore shopkeepers-businessmen. There were 594.92 crore UPI transactions in May 2022, with a total value of Rs 10.40 lakh crore. Only debit cards linked to savings and current accounts are currently linked to UPI, according to Das. Linking credit cards to UPI will help to broaden the scope of the service. He stated that the National Payments Corporation of India (NPCI) has been given the necessary parameters to prepare the new system.

Will profit in this manner

Payment by credit card is currently only available through machine swap or online. Now, Credit card holders will be able to make any form of payment after linking with UPI. However, this could raise the price.

Companies in the United States will face competition.

The domestic card market is currently dominated by US corporations such as Visa and Mastercard. The demand for RuPay credit cards would rise when the RuPay credit cards will be linked to UPI. Rupay card will face direct competition from American corporations in this case.

It is now proposed to allow linking of credit cards on the UPI platform. 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.