The Reserve Bank of India has announced that credit cards users will also be able to link credit cards with their UPI accounts. Currently, users can only link their savings and current accounts with UPI using their debit cards. The option of linking a credit card to the UPI account will provide a boost to the credit card transactions as well, which have been tanking after the introduction of UPI. Initially, RBI is allowing on RuPay Credit Cards to be linked to UPI accounts. Also Read - Cryptocurrencies are clear danger to financial systems, says RBI Governor Shaktikanta Das
The announcement has been made as a part of RBI’s statement on Developmental and Regulatory Policies. In a statement, RBI said, “The interoperability of PPIs 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 the linking of credit cards to UPI. 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.” Also Read - FASTag money stealing scam debunked by NPCI: Here’s why your FASTag money is safe
RBI has announced that the new facility will be made available after the required system development is complete. The central bank has assured that the necessary instructions will be issued to NPCI separately. The introduction of credit cards will allow users to tap into their credit line when in need. RBI is expected to extend the support for credit cards beyond Rupay to VISA and Mastercard eventually. However, there’s no official confirmation for the same yet. Also Read - How to get Rs 105 cashback via WhatsApp: Step-by-step guide
UPI currently has over 26 crore unique users. Over 5 crore merchants have been onboarded on the UPI platform, according to the latest data provided by RBI. In May 2022, 594.63 crore transactions amounting to ₹10.40 lakh crore were processed through UPI.
UPI is also expanding its reach with the help of WhatsApp. The most popular instant messaging application in the country now supports UPI payments. Users can send or receive money over chat with the same ease as texting.