Linking of credit card on UPI platforms will provide additional convenience to users and enhance the scope of digital payments, said Shaktikanta Das
RBI MPC Decisions: The Reserve Bank of India on Wednesday, June 8, said that it was proposing to allow linking of credit cards on UPI platforms. The new system will be introduced first by linking RuPay credit cards to UPI, or Unified Payment Interface, and then onboard other cards on the platform, RBI governor Shaktikanta Das said on the day. The decision was announced during the bi-monthly MPC meet statement of the Reserve Bank.
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“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,” said Shaktikanta Das during his MPC statement on the day.
“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. 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,” added the RBI governor.
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The interoperability of PPIs or Prepaid Payment Instruments has also facilitated access of PPIs to the UPI payment system for undertaking transactions. In order to further deepen the reach and usage, it is proposed to allow linking of credit cards to UPI, the RBI said in its MPC statement. “This arrangement is expected to provide more avenues and convenience to the customers in making payments through UPI platform. This facility would be available after the required system development is complete. Necessary instructions will be issued to NPCI separately,” added the statement.
The Reserve Bank of India’s Monetary Policy Committee (MPC) also decided to hike the Policy Repo Rate by 50 basis points to 4.9 per cent in its June meeting. RBI Governor Das said that MPC members voted unanimously to hike rates and to continue the withdrawal of the accommodative stance.
