Credit Cards Likely To Be Linked With UPI In Two Months This comes in line after the announcement of RBI governor, Shaktikanta Das, on the allowing of linking the credit cards to UPI to facilitate payments

By Teena Jose

Opinions expressed by Entrepreneur contributors are their own.

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.

Pexels

The national payments corporation of India (NPCI) is likely to operationalize the linking of credit cards to the unified payments interface (UPI) network. This comes in line after the announcement of RBI governor, Shaktikanta Das, on the allowing of linking the credit cards to UPI to facilitate payments.

"We are hoping that the RuPay credit card linking to UPI should get operationalized in couple of months' time. We are talking to BoB cards, SBI cards, Axis Banks and Union bank of India. We should be in a position to submit our proposal to the Reserve Bank of India in 10 days," said Dilip Asbe, CEO of NPCI, in an event organized by the Bank of Baroda, on 22 July.

Mentioning about the merchant discount rates (MDR), Asbe said in a statement that, "The payments body will aim to protect the smaller merchant from MDR, while existing credit card servicing merchants can continue to pay these rates. While credit cards attract higher MDR charges for merchants, the UPI does not deduct additional charges. Despite the announcement for linking UPI with credit cards, there is no clarity on whether credit card transactions made from UPI will attract MDR."

Commenting on the difference in pricing of UPI and credit cards, T. Rabi, deputy governor of RBI, said in a news report was quoted as saying, "Going to the pricing structure is jumping the gun and RBI will see how it will be priced. Basic objective of linking credit cards to UPI is to provide customers with wider choice of payments. Currently, UPI is linked to debit cards and savings bank accounts only, but now it will be linked to credit cards as well. We will introduce the arrangement of credit card linkage with UPI, and see how the pricing goes."

According to latest NPCI data, the total volume of UPI transactions declined to 5.86 billion in June from 5.96 billion in May. In terms of value, transactions declined to INR 10.14 trillion from INR 10.41 trillion in the previous month.

Teena Jose

News Desk Reporter with Entrepreneur India

Teena is a post graduate in financial journalism. She has an avid interest in content creation, digital media and fashion.
Thought Leaders

How This Family-Run Company Has Thrived for Five Generations

Marty Ozinga, the CEO of Ozinga, explains the legacy and future of the powerhouse construction materials company.

Business Solutions

Host Your Website with iBrave — $90 for Life Through March 24

iBrave is an advanced cloud web hosting platform.

Starting a Business

They Grew Up in a Financially-Challenged Single-Parent Home and Now These Twins Run a Multimillion-Dollar Real Estate Business. Here's How They Turned Hardship Into Inspiration.

How Jeremy and Joshua Mathis overcame adversity and turned their challenging upbringing into a foundation for real estate success.

Marketing

4 Ways AI Is Revolutionizing Targeted Advertising — And How to Balance It's Ethical Implications

AI-powered targeted advertising revolutionizes marketing with hyper-personalized promotions. However, ethical and transparency questions hover over this progress.

Business Solutions

Upgrade Your Work Laptop or Computer's OS With Windows 11 Pro, Now for Less Than $25

Outfit your office's computers and laptops with Microsoft's latest OS: Windows 11 Pro.

Making a Change

Learn ASL with This Bundle, Just $40 Through March 24

Learning American Sign Language can open up your mind and business potential, and this bundle makes it easy with 55 hours of content on the alphabet, essential phrases, and more.