RBI Governor Shaktikanta Das has said that the apex bank will soon allow linking of credit cards with the unified payments interface. He said the Rupay credit cards issued by the RBI-promoted National Payments Corporation of India (NPCI) will start the system first. The facility will be made available to other credit cards later as well. He said the new system will provide more avenues to the customers to make digital payments through UPI.
The RBI governor said UPI has become the most inclusive payment system in the country with over 31 crore users. He said over Rs 10.40 lakh crore exchanged hands last month.
What does RBI's announcement mean?
As of now only debit cards can be linked to UPI profiles. A user has to punch in debit card details, CVV number and expiry date to register on the UPI platform. UPI payments can be made through debit cards linked to savings and current accounts. By allowing linking credit cards with UPI, customers can now make contact less payments through their credit accounts.
How is it beneficial?
A majority of UPI payments involve online shopping. Earlier, a person using UPI to make a payment was forced to pay from her savings account. She was not able to make credit card purchases using UPI. With the new system, they can now make UPI payments via credit cards. The new system will promote ease of business. It will also promote digital payments.
.
