BENGALURU: The Reserve Bank of India (RBI) on Wednesday proposed to allow credit cards to be linked with the UPI (United Payments Interface) platform, with the aim of enhancing the UPI platform and digital payments methods.
Shaktikanta Das, the RBI Governor said that initially Rupay credit cards will be linked to the UPI platform. "This will provide additional convenience to users and enhance the scope of digital payments," he said.
With over 26 crore users and 5 crore merchants on the platform, UPI has become the most inclusive payment mode in the country. In May 2022, 594 crore transactions worth Rs 10.4 lakh crore were processed through UPI.
Currently, transactions are facilitated through UPI by linking savings or current accounts through users' debit cards. With this new proposal, users will be able to link UPI with their credit cards.
Two of the five transactions currently underway are cashless, and a recent report by digital payment companies PhonePay and Boston Consulting Group predicts that by 2026, two-thirds of payment transactions will be digital, the New Indian Express reported
Additionally, UPI transactions in FY22 are approximately 9x of volume of credit and debit card transactions.