Now, credit cards to be linked with UPI platform

MUMBAI: The RBI on Wednesday proposed allowing linking of credit cards to UPI. RBI Governor Shaktikanta Das announced that such linking will be possible starting with the credit cards issued by the RBI-promoted National Payments Corporation of India (NPCI). He said the new arrangement will be implemented after system developments and instructions will be issued to the NPCI for the same.

Das said the new arrangement is expected to provide more avenues and convenience to the customers in making payments through the UPI platform. UPI has become the most inclusive mode of payment in India, with over 26 crore unique users and 5 crore merchants onboarded on the platform, he added.

In May, 594.63 crore transactions amounting to Rs 10.40 lakh crore were processed through UPI, Das said. To a specific question pointing out the differences between UPI and credit cards from a usage fees perspective, and how they are exactly opposite, Reserve Bank Deputy Governor T Rabi Sankar said going into the pricing structure for such a service right now will be akin to jumping the gun.

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