RBI Now Allows You To Link Credit Card With UPI

Yesterday, the Reserve Bank of India (RBI) announced that credit cards can now be linked with the unified payments interface (UPI). This will encourage more users to make payments via UPI, with the added convenience of credit cards.

RBI Governor Shaktikanta Das said during the bi-monthly policy review that the program will start with Rupay credit cards that are issued by RBI’s National Payments Corporation of India (NPCI). Prior to this move, you could only link debit cards and bank accounts with UPI.

The Governor said, “In order to further deepen the reach and usage, it is proposed to allow linking of credit cards to UPI. To start with, Rupay credit cards will be enabled with this facility”. Das added, “This arrangement is expected to provide more avenues and convenience to the customers in making payments through UPI platform”.

Do note that this facility will only be available once the system development is concluded. This new system will make it even more convenient for users to make transactions via UPI. The adoption of UPI has become widespread over the years with 26 crore unique users and 5 crore merchants using the facility.

Das noted that in the month of May itself, 594.63 crore transactions worth Rs 10.40 lakh crore in total were facilitated via UPI. The payment system offers convenience and flexibility by allowing a variety of prepaid payment instruments (PPIs) for transactions.