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Rupay credit card linkage to UPI may become operational in couple of months: NPCI

The RBI in June allowed linking of credit cards on the UPI platform, with the platform being linked only with Rupay credit cards at the initial stage.

rupay UPI
As per latest NPCI data, the volume of UPI transactions fell to 5.86 billion in June from 5.96 billion in May. (Bloomberg via IE)

The National Payments Corporation of India (NPCI) expects the linking of the Rupay credit cards to unified interface payments (UPI) in two months, Dilip Asbe, chief executive officer said, adding that the payments body is likely to submit its proposal seeking approval from the Reserve Bank of India (RBI) in 10 days.

“We are hoping that the RuPay credit card linking to UPI should get operationalized in couple of months’ time. We are talking to BoB Cards, SBI Cards, Axis Bank, and Union Bank of India,” Asbe said at the Bank of Baroda’s annual banking conference.

The RBI in June allowed linking of credit cards on the UPI platform, with the platform being linked only with Rupay credit cards at the initial stage.

On merchant discount rates (MDR), Asbe said that the payments body will aim to protect the smaller merchant from MDR, while existing credit card servicing merchants can continue to pay these rates.  

While credit cards attract higher MDR charges for merchants, the UPI does not deduct additional charges. Despite the announcement for linking UPI with credit cards, there is no clarity on whether credit card transactions made from UPI will attract MDR. 

As per latest NPCI data, the volume of UPI transactions fell to 5.86 billion in June from 5.96 billion in May. In value terms, transactions declined to Rs 10.14 trillion from Rs 10.41 trillion in the previous month.

On cross border mechanism for UPI, Asbe said that UPI linkage with payments platform will happen in next few months. The RBI is working to establish to reduce the cost of remittance transactions.

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