Finclusion
  • News
  • Explained
  • Fact Check
  • Inclusion
  • Blog
No Result
View All Result
Paytm
  • News
  • Explained
  • Fact Check
  • Inclusion
  • Blog
No Result
View All Result
Finclusion
No Result
View All Result
credit card upi paymentss

All About RBI Linking Credit Card UPI Payments.

November 6, 2022
in Banking
418 5
0
Share on FacebookShare on Twitter

The increased use of mobile phones and the growth of digitisation in India have led to more people adopting e-payment methods. The advent of the United Payments Interface (UPI) has further encouraged businesses and consumers to shift to e-payments. UPI allows users to merge multiple bank accounts into a single platform. UPI allows users to transfer money instantly so that amount is debited from the sender’s bank account and credited into the receiver’s account. While UPI initially facilitated the linking of debit cards only, in June 2022, the Reserve Bank of India (RBI) allowed credit card UPI payments by linking the credit card to payment platforms.

A glance at UPI

Launched in 2016, UPI enables people to transfer funds through affiliated apps such as Paytm. The intent is to create a cashless economy where maximum transitions occur electronically. Numbers show that in six years, users have grown comfortable with UPI.

You might also like

repo rate

The New Repo Rate Is Likely to Change the Course of Loans. Here’s How

November 4, 2022
open banking

The What, Why, and How of Open Banking

November 6, 2022

According to data from the National Payments Corporation of India, the volume of transactions on UPI is only going from strength to strength. In September 2022, UPI processed 678 crore transactions, amounting to Rs 11.16 trillion. The numbers in August 2022, too, were equally encouraging. Amounting to Rs 10.73 trillion, UPI saw 657 crore transactions. 

Compared to the previous year, UPI transactions saw a 68% increase in value and an 85% rise in volume. 

What is the possible impact of credit card UPI payments?

While allowing credit cards to be linked to UPI, the RBI described UPI as the “most inclusive mode of payment” in India. As per the NPCI, this move will give customers more opportunities to use their credit cards. Meanwhile, the national body added that merchants and business owners who accept credit card UPI payments using QR codes can be an active part of the credit ecosystem. 

The RBI began onboarding credit cards onto platforms with the RuPay credit cards. While there are no charges for debit card use on UPI, for credit cards, there will be no charge for transactions up to ₹2,000.

Now you can get your credit card with the Paytm SBI Card. Earn rewards on this credit card when you make payments via Paytm. 

RBI guidelines for credit card

To make the onboarding process of credit cards on UPI platforms easier, the NPCI has issued guidelines. The national body also said these guidelines may be further improved based on market feedback.

As per the guidelines, customers can link credit cards to a Virtual Payment Address on a UPI-enabled app. The link will be facilitated through a registered mobile number. 

Inward payments to the credit card-specific VPA from a savings/current account will be treated as credit card bill payment, NPCI said. 

To enable easy payment of credit card dues, recurring transactions below Rs 15,000 will be processed without an Additional Factor of Authentication.

The RBI guidelines for credit card payment on UPI also specify that all credit card-related issues or disputes will be addressed by Online Dispute Resolution (UDIR). Only authorised credit card issuers are permitted on UPI platforms.

Now with the RBI having enabled the linking of credit cards to the UPI, it is likely that the path to a cashless society will be a shorter one. With credit cards joining the UPI ecosystem and digitisation rising across the country, cashless transactions will likely rule the payment ecosystem for the foreseeable future.

Related Stories

repo rate

The New Repo Rate Is Likely to Change the Course of Loans. Here’s How

by Finclusion
November 4, 2022
0

At a monetary policy meeting on August 5, 2022, the Reserve Bank of India (RBI) announced the repo rate be...

open banking

The What, Why, and How of Open Banking

by Finclusion
November 6, 2022
0

For centuries, financial services have been synonymous with banks. Banks remained guarded about customer data and transaction details. However, over...

digital banks

Here’s How Banks can Thrive in the Digital World

by Finclusion
October 12, 2022
0

As we age towards digitalisation, new fintech startups emerge and spare no effort in pleasing tech-savvy customers. These startups are...

Banking as a Service — A Futuristic Banking Revamp

Banking as a Service — A Futuristic Banking Revamp

by Finclusion
October 11, 2022
0

Banking as a service is a model through which licensed banks can integrate their services with non-banking service providers. It...

Next Post
open banking

The What, Why, and How of Open Banking

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Finclusion

Quick Links

  • About Us

Follow Us

No Result
View All Result
  • News
  • Explained
  • Fact Check
  • Inclusion
  • Blog

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?
Go to mobile version