Currently, users can only use their debit cards to link their savings and current accounts to UPI.
Digital Desk: The Reserve Bank of India approved the linking of UPI with credit cards on Wednesday. However, this service will be at first limited to RuPay Credit Cards only. Currently, users can only use their debit cards to link their savings and current accounts to UPI.
As per the RBI, the UPI platform currently has over 26 million unique users and 5 crores of merchants. UPI processed 594.63 crore transactions worth Rs 10.40 lakh crore in just one month in May 2022.
In its 'Statement on Developmental and Regulatory Policies,' released following the bi-monthly monetary policy meeting today, the central bank said, "It is proposed to allow credit card linkage to UPI to broaden the reach and utilisation. This functionality will be activated on Rupay credit cards first."
The RBI predicts that this arrangement will provide clients with greater options and convenience when making payments using the UPI platform.
"After the necessary system development is completed, this facility will be available. Necessary instructions will be issued to NPCI separately," RBI said in a statement.
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