RBI allows credit cards to be linked with UPI, says will enable more people to make payments using platform

Mumbai: The Reserve Bank of India (RBI) on Wednesday allowed credit cards to be linked with the unified payments interface (UPI), which will enable more people to make payments using the popular platform.

At present, UPI facilitates transactions by linking savings or current accounts through users' debit cards.

"It is proposed to allow linking of credit cards to UPI," RBI Governor Shaktikanta Das said while announcing the regulatory moves, along with the bi-monthly policy review.

Also Read: RBI hikes repo rate by 50 bps to 4.90%, retains GDP growth forecast at 7.2%

He said that to start with Rupay credit cards issued by the RBI-promoted National Payments Corporation of India (NPCI) will be enabled with this facility, and the facility will be made available after system developments.

More from Business

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.

Don't Miss: EMIs to rise after RBI hikes key interest rate by 50 bps

In May, 594.63 crore transactions amounting to Rs 10.40 lakh crore were processed through UPI, Das said.

The interoperability of prepaid payment instruments (PPIs) has also facilitated access of PPIs to the UPI payment system for undertaking transactions, Das said.

Read all the Latest News, Trending News, Cricket News, Bollywood News,

India News and Entertainment News here. Follow us on Facebook, Twitter and Instagram.