Reserve Bank of India (RBI) Governor Shaktikanta Das released RuPay Credit Card on Unified Payments Interface or UPI network, this Tuesday. Experts believe this move will result in 5 times growth in the line of credit. Until now we only had UPI linked to our bank accounts and debit cards only, but now we are capable of lining RuPay Credit Cards too.
These Bank To Be The First To Offer RuPay Credit Card To The Customers
With the beginning of a new credit card-UPI linkage process Punjab National Bank, Union Bank of India, and Indian Bank will be the first to offer.
“Customers will benefit from the increased opportunity to use their credit cards, and merchants will benefit from the increase in consumption by being part of the credit ecosystem with the acceptance of credit cards using assets like QR codes”, said National Payments Corp Of India (NPCI).
“RuPay credit cards will be linked to a Virtual Payment Address (VPA) i.e. UPI ID, thus directly enabling safe, and secure payment transactions. The initial phase of operationalisation will be centred on extracting actionable learnings that would be used to fine-tune the proposition in later phases to scale up the usage”, it added.
“Together, the RuPay credit card on UPI, UPI LITE, and Bharat BillPay Cross-Border Bill Payments initiatives gives the potential to revolutionise the digital payments ecosystem and extend the reach of digital payments to many new users across India and abroad and aid the journey of onboarding the next 300 mn users on digital payments,” it said.
Elevating Credit Card Usage and UPI Transactions
Rising credit card and UPI payments indicate an increase in consumption amid the recovery in economic activities with the ebbing impact of the Covid-19 pandemic”, as per the experts and market analysts.
As for facts, there are exactly 338 banks registered on the UPI platform, according to the July 2022 data.
“Similarly, credit card spending through the PoS (Point of Sale) terminal increased from ₹29,988 crores in April this year to ₹32,383 crores in August. The credit card spending on e-commerce platforms, which was valued at ₹51,375 crores in April, rose to ₹55,264 crores in August,” mentioned livemint.