RuPay Credit Cards, UPI linking proposed by RBI; Know how it will affect you

RBI has proposed linking RuPay Credit Cards with UPI. Here is how it will affect you. Check details here.

Know all about RBI's proposal to link RuPay Credit Cards with UPI. (Reuters)

In a big development, the Reserve Bank of India (RBI) has proposed RuPay Credit Cards-UPI linking. The announcement was made by the RBI Governor Shaktikanta Das on Wednesday while announcing the decisions made in the Monetary Policy meeting. RBI has said that linking of RuPay Credit Cards with UPI will provide additional convenience to users and enhance the scope of digital payments. "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," RBI said in the statement.

At present, UPI facilitates transactions by linking savings/current accounts through users' debit cards. It is now proposed to allow linking of credit cards on the UPI platform, RBI further added. It can be known that UPI is a system that powers multiple bank accounts into a single mobile application (of any participating bank), merging several banking features, seamless fund routing and merchant payments into one hood. It also caters to the “Peer to Peer” collect request which can be scheduled and paid as per requirement and convenience.

There are several UPI based applications that can be used to make online payments like Google Pay, PhonePe, Paytm, among others. As per the information provided by RBI, UPI has become the most inclusive mode of payment in India with over 26 crore unique users and 5 crore merchants on the platform. In May 2022 alone, about 594 crore transactions amounting to Rs. 10.4 lakh crore were processed through UPI.

However, it can be noted that no further details have been given on linking the RuPay Credit Cards with UPI. Even the timeline or date when this will be enabled, how the new process will work, and other details have not yet been informed.