RBI allows linking of credit card with UPI: Everything you should know
New Delhi, Jun 08: The Reserve Bank of India (RBI) has allowed linking of the credit card with UPI. This facility would however be available initially only for RuPay Credit Cards.
Currently the UPI only facilitates transactions by linking the savings and current account through your debit cards. Now with this announcement the users will soon be able to carry out a UPI transaction by linking it with the RuPay Credit Cards.
"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," the RBI said in a statement.
With this move the the RBI feels that this arrangement will provide more avenues and also convenience to the customers to pay payments through the UPI platform.
"This facility would be available after the required system development is complete. Necessary instructions will be issued to NPCI separately," the RBI said.
According to the RBI there are over 26 crore unique users and 5 crore merchants who are onboarded on the UPI platform currently. In May 2022 594.63 crore transactions to the tune of Rs 10.40 lakh crore were processed through UPI.
Earlier the RBI hiked the lending rate by 50 basis points to 4.9 per cent. The Monetary Policy Council (MPC) vote unanimously and decided to keep stance withdrawal from accomodative.
We are facing new challenges with every passing day due to the war. War in Europe is lingering, challenges accentuating supply chains. Recovery is gaining momentun despite the pandemic and war. On the other hand inflation has become global, RBI Governor Shaktikanta Das said.
The MPC voted unanimously to remain focused on the withdrawal of accommodation to ensure inflation remains within target going forward. The standing deposit facility and marginal standing facility rates were also raised by 50 basis points. The standing deposit facility rate is now at 4.65 per cent and the marginal standing facility rate at 5.15 per cent.