Credit Card-UPI Linking: Here’s a good news for Credit Card users. The Reserve Bank Of India (RBI) has allowed linking of UPI with Credit Card. However, this facility will be initially available for RuPay Credit Cards only.
Currently, UPI facilitates transactions by linking savings and current accounts through debit cards. Users will soon be able to do UPI transactions by linking it with their Rupay Credit Cards.
In the ‘Statement on Developmental and Regulatory Policies’ released after the bi-monthly monetary policy meet today, the central bank said, “In order to further deepen the reach and usage, it is proposed to allow linking of credit cards to UPI. To start with Rupay credit cards will be enabled with this facility.”
RBI expects that this arrangement will provide more avenues and convenience to the customers in making payments through UPI platform.
“This facility would be available after the required system development is complete. Necessary instructions will be issued to NPCI separately,” the RBI statement said.
According to RBI, over 26 crore unique users and 5 crore merchants are onboarded on the UPI platform currently. In May 2022 alone, 594.63 crore transactions amounting to Rs 10.40 lakh crore were processed through UPI.
Meanwhile, the RBI today raised repo rate by 50 bps 4.9 percent. The RBI MPC also noted that inflation will be likely remain elevated in the first three quarters of the current financial year.
The repo rate hike is likely to result in increased lending rates by banks and borrowers may have to pay more for loan EMIs.
The repo rate hike may also make home loans costlier and hit affordable and mid segment housing demand, according to experts.