The National Payments Corporation of India (NPCI) has brought in a feature enabling the linkage of RuPay credit cards to the unified payments interface (UPI). Point-of-sale (POS) terminal is no longer needed to use credit card in a shop. With the new RuPay credit card on UPI feature, one can simply scan QR codes at merchant outlets and pay with the credit card via the UPI app. Know how RuPay credit cards on UPI will work and its limitations.
Read More: HDFC Bank hikes interest rates on this deposit scheme. Details here
Who can use RuPay credit cards on UPI?
At present, the RuPay credit card on the UPI facility is available on the BHIM app only for certain bank customers. “Customers of Punjab National Bank, Union Bank of India, and Indian Bank will be the first to be able to use RuPay Credit Card on UPI with BHIM App,” according to an NPCI circular.
RuPay credit card linkage to UPI
The process of linking a RuPay credit card with UPI is quite similar to the way a user links a savings bank account or debit card to UPI.
Payments that can be done using the RuPay credit card on UPI
RuPay credit cards on UPI can only be used for merchant payments. A customer can also use this new feature for electricity or OTT bill payments or other recurring merchant payments as RBI has permitted the auto-pay option for recurring transactions of up to Rs 15,000 without the additional factor of authentication, said Lalit Chowdhary, Senior Vice President, Mindgate Solutions, as per ET report.
Read More: BharatPe rolls out ‘My Shop My Ad’ campaign for its merchant partners
Payments that cannot be made using RuPay credit cards on UPI
-Transferring money to any other individual UPI handle. Example: you cannot transfer money to your friends or family who have created their UPI handles as individuals, using a RuPay credit card on UPI.
-RuPay credit card-UPI handle cannot be used to make payments to any other credit card-UPI handles too.
-Transferring money to small merchants under P2PM category (Small merchants with an expected inward UPI transaction less than or equal to Rs 50,000 per month are categorised as ‘P2PM’ by NPCI).
