The Reserve Bank of India on Wednesday, 8 June, said it plans to allow credit cards to be linked to the Unified Payments Interface (UPI), in order to "further deepen the reach and usage" of the payments system.
"To start with, RuPay credit cards will be enabled with this facility. This arrangement is expected to provide more avenues and convenience to the customers in making payments through UPI platform," the RBI said in a statement released after the bimonthly monetary policy meet.
How to link your credit card to UPI? From when will this come into effect? Here's all you need to know:
Which accounts are allowed to be linked to UPI currently?
Currently, UPI only allows you to transfer funds by directly linking your bank accounts (savings or current) or debit cards.
When will we be allowed to link UPI to credit card?
There is no specific date mentioned yet.
The RBI said it will issue necessary instructions to the National Payments Corporation of India (NPCI) separately, and the facility will be rolled out after the "required system development" is complete.
Are there particular credit cards I am allowed to link?
Not really. To start with, Rupay credit cards will be enabled with this facility.
Watch out this space for more information on this.
How can I link my credit card to payment app?
Go to your app and click on 'ADD PAYMENT METHOD'.
You will see the "ADD CREDIT/DEBIT CARD OPTION" option.
Enter the card number, valid upto date, CVV, cardholder's name.
Once these details are entered, click on save.
What is the significance of this move?
In its statement, RBI referred to UPI as the "most inclusive" mode of payment in India.
The interoperability of PPIs or Prepaid Payment Instruments (like cards and wallets) has also facilitated access to the UPI payment system, it said.
"Currently, over 26 crore unique users and 5 crore merchants are onboarded on the UPI platform. In May 2022 alone, 594.63 crore transactions amounting to Rs 10.40 lakh crore were processed through UPI," RBI said in the statement.
What is the rule on e-mandate for recurring payments?
The RBI also hiked the limit for e-mandate-based recurring payments from Rs 5,000 to Rs 15,000 per transaction. This means that you can set up recurring payments, that won't require OTPs, for up to Rs 15,000.
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