RBI MPC Outcome | Credit Cards Can Now Be Linked To Your UPI, Starting With Rupay. Check Details

At present, UPI facilitates transactions by linking savings/current accounts through users’ debit cards, but now credit cards has been allowed to be linked, followed by other card networks

In May 2022 alone, about 594 crore transactions amounting to Rs10.4 lakh crore were processed through UPI, according to the RBI.

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Reserve Bank of India (RBI) Governor Shaktikanta Das on Wednesday proposed to link rupay credit cards to Unified Payments Interface (UPI) platforms amid the announcement of hike in policy rate by 50 basis points (bps). The central bank's initiative to link credit cards via UPI will be a major shift in how the UPI functions.

The implementation will begin with the indigenous RuPay credit cards being allowed to be linked, followed by other card networks such as Visa and Mastercard.

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 Rs10.4 lakh crore were processed through UPI, according to the RBI.

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. 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. "This will provide additional convenience to the users and enhance the scope of digital payments," noted the governor.

How will it help users?

If the customer adds the credit or debit card to UPI apps, he/she can make payment without the need to swipe it at POS machine. This means a customer can simply scan a QR code and choose the added credit/debit card as payment method to make the payment. After you initiate a payment through the UPI app using a debit or credit card, a one-time password (OTP) will be sent to your registered mobile number to complete the payment.

You can pay via credit or debit card using UPI in popular apps like GPay and PhonePe. In case of using Gpay to pay via credit or debit card, you need to first add the cards to the UPI app. As per the GPay website, an individual can add debit, credit cards of the following banks, provided they are operated on Visa and MasterCard payment gateways.

Check steps to add credit, debit card on Gpay:

First, open the app and click on your profile picture

Then click on the payment methods. The app will show you current bank accounts that are added on the app.

Click on 'Add credit or debit card' to add your card on the Gpay

You will need to enter your card number, expiry date, CVV and cardholder's name and billing address. Click on Save

Then you have to accept the issuer's terms and conditions. Click on 'Activate' to start paying in stores and in merchants. You will be required to verify your card. A one-time password (OTP) will be sent to your registered mobile number for additional authentication. Once you have verified your card, you can use it to pay for transactions.