RBI To Widen Digital Payments Scope Proposes To Link Credit Cards With UPI

In its address of the second RBI MPC of the Fy23, Governor Das in order to make UPI enhance the scope of digital payments has proposed to link credit cards also with the UPI mode.

RBI To Widen Digital Payments Scope Proposes To Unify Credit Cards With UPI

As per the RBI Governor's Statement, "UPI has become the most inclusive mode of payment in India with over 26crore unique users and 5 crore merchants on the platform. In May 2022 alone, about
594 crore transactions amounting to ₹10.4 lakh crore were processed through UPI. At present, UPI facilitates transactions by linking savings/current accounts through users' debit cards. It is now proposed to allow linking of credit cards on the UPI platform. To begin with, the Rupay credit cards will be linked to the UPI platform. This will provide additional convenience to users and enhance the scope of digital payments".

UPI is a mode that embeds several bank accounts into a single app. The feature leads to merging several banking functionalities, seamless fund routing as well as merchant payments into one net. Also, at the same time it offers 'Peer to Peer' collect request

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