upi: RBI proposes linking of credit cards with UPI: What this may mean for users – Times of India

The Reserve Bank of India has proposed allowing credit cards to be linked with the Unified Payments Interface (UPI). RBI Governor Shaktikanta Das announced the same earlier today. He said that over the last few years, UPI has become the most inclusive mode of payment in India with over 26 crore unique users and 5 crore merchants on the platform. As per RBI, in May 2022 alone, about 594 crore transactions amounting to Rs 10.4 lakh crore were processed through UPI. The country’s apex bank sees the regulatory announcement helping lakhs of credit card holders across the country.
What is the current status
Presently, UPI facilitates transactions by linking savings or current accounts through users’ debit cards. This means that presently users cannot add money to their UPI accounts using credit cards. When a user pays through a UPI-enabled account, the money gets deducted through his linked Bank account or debit card.
What is RBI proposing
“…it is proposed to allow linking of credit cards to UPI,” Das said. It is now proposed to allow linking of credit cards on the UPI platform. According to RBI Governor Shaktikanta Das, this will enable more people to make payments using the popular platform. Das said the new arrangement is expected to provide more avenues and convenience to the customers in making payments through the UPI platform.
When will this come into effect
RBI said that to start with RuPay credit cards issued by the RBI-promoted National Payments Corporation of India (NPCI) will be enabled with this facility. It has not set any timeline for the same. The facility will be made available once the system is developed, said RBI.
Are their any other guidelines for this
No, RBI has not given any other details about this. It is not clear how the process will work. Google Pay currently allows users to link their credit cards with the app. It is not very clear how the new process will work differently and all that it will offer to users.
Google Pay too is a UPI app. Users can add, remove or update their credit and debit cards within their Google Pay account. Once linked, users can use it for the following: Tap & Pay at NFC enabled payment terminals; Bharat QR code based Payments at online & offline merchants; bill payments and recharges on Google Pay; and online payments on Myntra, Dunzo, Yatra, Magicpin, Coolwinks, EaseMyTrip, Confirmtkt Android apps.