In a major development, the Reserve Bank Of India (RBI) has allowed the linking of UPI with Credit Card. On June 8, RBI Governor Shaktikanta Das announced that the process would begin with RuPay credit cards for the time being.
It is known that UPI currently allows transactions by linking customers’ debit cards to their savings or current accounts.
Speaking about the UPI platform, the RBI governor said, “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…It is now proposed to allow linking of credit cards on the UPI platform.”
“This arrangement is expected to provide more avenues and convenience to the customers in making payments through the UPI platform. This facility would be available after the required system development is complete,” the RBI said.