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Good News! RBI Allows Linking Of Credit Card To UPI Platforms- All You Need To Know
Writer: Ronit Kumar Singh
A confident and reliable journalist who always desires to toss the unheard voices. I cover politics and governance extensively through stories.
India, 9 Jun 2022 7:20 AM GMT
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Creatives : Ronit Kumar Singh
A confident and reliable journalist who always desires to toss the unheard voices. I cover politics and governance extensively through stories.
The customers of UPI platforms will soon be able to make payments from their UPI platforms via their credit cards. The Reserve Bank of India (RBI) has allowed the linking of UPI with credit cards.
In the latest announcement, the Reserve Bank of India (RBI) allowed the linking of UPI platforms to credit cards. The facility of completing a transaction via UPI platforms through credit cards will be available soon to the customers. The RBI Governor Shaktikanta Das made this announcement on June 8, Wednesday. Initially, the users who own a RuPay credit card would only be eligible for such transactions. For now, the UPI platforms only allow customers to complete payments by linking their savings or current account via debit card.
The RBI Governor has further said that the Central Bank will initiate such transactions exclusively for RuPay credit card holders. The motive of allowing credit card transactions through UPI platforms is to increase customer convenience and expand India's digital transaction space. The decision has been taken in the shadow of digital payment's increasing growth in the country.
India's Digital Transaction Lead
Currently, India has nearly 26 crores of UPI users, and it has come out as one of the most popular mediums for digital payment. In May 2022, India crossed the Rs 10 lakh mark with around 590 crore transactions. The National Payments Corporation of India (NPCI) has an estimated 100 crore transactions through UPI platforms over the next 3 to 5 years.
"Being one of the convenient and hassle-free modes, UPI has become the most popular payment method. Now, with the new change, customers would get more options and convenience in making payment for various small and large bills," said Pranjal Kamra, chief executive officer, Finology Ventures, News18 reported.
RBI Initiative Is To Help Customers
The RBI expects that this initiative will help increase the convenience factor for customers while doing UPI transactions. Earlier, only a debit card payment facility was available, and now a credit facility is available for all customers.
An RBI statement mentions, "This facility would be available after the required system development is complete, and necessary instructions will be issued to NPCI separately."
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