RBI Allows UPI Credit Card Linking: All You Need To Know

There is good news for credit card users in India. The Reserve Bank of India (RBI) has made a new announcement for credit card users. Going by the same, it is now possible to link UPI and credit card. However, this service is limited only to the RuPay Credit Cards.

Currently, UPI (Unified Payments Interface) facilities transactions by letting users to link their bank accounts, be it savings or current accounts. Users can either link their bank accounts via debit cards or registered mobile numbers. With the recent revision made by RBI, it is possible to make UPI transactions by linking it with their RuPay Credit Cards.

RBI Allows UPI Credit Card Linking

In the official 'Statement on Developmental and Regulatory Policies' that was released by RBI after the bi-monthly monetary policy meet, it was announced that they have come up with linking of credit cards to UPI. It was confirmed that the same was rolled out to deepen the reach and usage of UPI payments further.

RBI expects that the facility of linking credit cards (currently only RuPay credit cards) will provide more avenues and conveniences to the users as they can make payments via UPI. This new facility will be available after the necessary system development is done. The instructions for the same will be issued to the NPCI separately, added RBI.

Furthermore, it was revealed that over 26 unique users and 5 crore merchants are using the UPI platform for payments for now. In May 2022, the total number of UPI transactions surged to 594.63 crore and accounted for Rs. 10.40 lakh crore.

In addition to this, the RBI raised the repo rate by 50 bps 4.9 percent. The MPC also noted that the inflation will likely to remain high in the first three quarters of this fiscal year, which is until the end of this month. Also, the repo rate is to result in increased lending rates by banks and might require borrowers to pay more for loan EMIs. This might make home loans more expensive and take a blow on the mid-range and affordable segment housing demand, claim experts.