RBI Policy Update: Repo Rate Hiked by 50 bps; RuPay Credit Cards Can Be Linked To UPI

In its June meeting, the Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) voted to raise the Policy Repo Rate by 50 basis points to 4.9 per cent. MPC members decided unanimously to raise rates and maintain the accommodative posture, according to RBI Governor Shaktikanta Das. Inflation is expected to remain over 6% for the first three quarters of the current fiscal year, according to the MPC.

According to Das, RuPay credit cards can now be linked to UPI. According to the RBI, this will improve consumer convenience and expand the scope of digital payments.

"UPI has become the most inclusive mode of payment in India with over 26 crore unique users and five crore merchants on the platform. The progress of UPI in recent years has been unparalleled. Many other countries are engaged with us in adopting similar methods in their countries," RBI Governor Das said.