During an announcement concerning repo rate hikes today, the Reserve Bank of India (RBI) Governor Shaktikanta Das proposed the linking of RuPay credit cards to the UPI platform. Apart from the convenience of the interlinking between RuPay credit cards with the UPI platform, users will benefit from the added ease of use owing to the increased scope of digital payments.
Currently, UPI allows transactions by linking savings or current accounts using customers’ debit cards. Das said, “UPI has become the most inclusive mode of payment in India with over 26 crore unique users and five crore merchants on the platform. The progress of UPI in recent years has been unparalleled. Many other countries are engaged with us in adopting similar methods in their countries.”
This added benefit comes in the light of details that underscore the growing number of payment transactions using UPI. “In May this year alone, around 594 crores amounting to ₹10.4 lakh crores was processed through UPI,” added Das.
Speaking on the same, Ramesh Narasimhan, CEO, Worldline India said, "UPI today is by far the most popular payment option for consumers online. In order to further deepen the reach and usage of UPI while keeping consumer preference at the epicentre, the RBI has offered an innovative solution to permit the linking of credit cards on to UPI platform. This will not only encourage consumers to continue making payments via UPI but also provide the benefit of short-term credit that credit cards extend.”