RBI proposes to link credit cards to UPI platform
Mumbai: The Reserve Bank of India (RBI) on Wednesday proposed to allow the linking of credit cards to the Unified Payments Interface (UPI) platform. After the Monetary Policy Committee (MPC) meeting RBI Governor Shaktikanta Das announced that the implementation will start with the indigenous RuPay credit cards. “At present, UPI facilitates transactions by linking savings/current […]
Mumbai: The Reserve Bank of India (RBI) on Wednesday proposed to allow the linking of credit cards to the Unified Payments Interface (UPI) platform.
After the Monetary Policy Committee (MPC) meeting RBI Governor Shaktikanta Das announced that the implementation will start with the indigenous RuPay credit cards.
“At present, UPI facilitates transactions by linking savings/current accounts through users’ debit cards. It is now proposed to allow linking of credit cards on the UPI platform,” RBI Governor said in his statement after the MPC meeting.
“To begin with, the Rupay credit cards will be linked to the UPI platform. This will provide additional convenience to users and enhance the scope of digital payments,” Das said.
RBI Governor noted that the “UPI has become the most inclusive mode of payment in India with over 26 crore unique users and 5 crore merchants on the platform. In May 2022 alone, about 594 crore transactions amounting to Rs 10.4 lakh crore were processed through UPI.” The RBI also decided to enhance e-Mandates limits on cards for recurring payments.
The framework for processing of e-mandate based recurring payments was introduced by the Reserve Bank of India keeping in mind the benefits of convenience, safety and security to the users, RBI Governor said.
Under this framework, over 6.25 crore mandates have been registered in favour of a large number of domestic and over 3,400 international merchants.
To further facilitate recurring payments like subscriptions, insurance premia, education fee, etc. of larger value under the framework, the limit is being enhanced from Rs 5,000 to Rs 15,000 per transaction. This will further leverage the benefits available under the framework and augment customer convenience, Das said.
