New Delhi,( thestates.news) : The Reserve Bank of India (RBI) Governor Shaktikanta Das proposed on Wednesday linking RuPay credit cards to Unified Payments Interface (UPI) platforms in the wake of a 50 basis point hike in policy rates (bps). The central bank’s initiative to link credit cards via UPI will represent a significant change on how the UPI operates. The indigenous RuPay credit cards will be the first to be linked, followed by other card networks such as Visa and Mastercard.
With over 26 crore unique users and five crore merchants on the platform, UPI has become India’s most inclusive mode of payment. According to the RBI, approximately 594 crore transactions totaling Rs 10.4 lakh crore were processed through UPI in May 2022 alone. Currently, UPI facilitates transactions by connecting savings/current accounts via users’ debit cards. It is now proposed that credit cards be linked on the UPI platform.
First and foremost, the RuPay credit cards will be linked to the UPI platform. This will increase user convenience and broaden the scope of digital payments. This will provide additional convenience to users and expand the scope of digital payments, the governor explained.(HS)
