Why Link Rupay Credit Card With UPI? Here’re the Ups and Downs

Unified Payments Interface, or UPI, is a revolutionary digital payments service launched by the NPCI in 2016. Since its release, this service has proved to be an ultimate success, recording transactions in billions.

The working structure of UPI is very simple—users are just required to link their bank accounts or debit cards to UPI apps via registered phone numbers. The payment transfer process is very convenient, requiring only a UPI ID or QR code to send or receive the payments.

In addition to these abilities, the Reserve Bank of India is allowing Rupay credit card users to link their cards with UPI apps and pay. Initially, the payment was being deducted from the bank account, but now the remitting source can be a credit card.

The Benefits:

The first major benefit of linking Rupay credit cards with UPI is the convenience of payment. One can make UPI payments 24*7, no matter what the occasion is—whether it is a national holiday or even a nationwide lockdown.

“Credit card-UPI linking will definitely add to the convenience of online payments. Earlier, the funds available via UPI were limited to what you could access from your savings account via net banking or your debit card. But now, users will have the flexibility to carry out UPI transactions up to the credit limit available on their linked credit card. Given the popularity of UPI, this integration can boost credit card usage and lead credit card companies to incentivize card usage with more lucrative reward programs and offers,” said Adhil Shetty, CEO of

Secondly, the process becomes much quicker, as you use a saved card number and CVV to make the payment in comparison to the traditional payment method.

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The Drawbacks:

The one most regrettable disadvantage of linking your Credit Card to UPI is overspending, ultimately giving us a large bill amount and all used up credit limit utilization, which affects the credit score negatively.

“When one would restrict their spending via UPI as much as the funds from the linked savings bank account allowed, credit-card-UPI integration may lead to impulsive spending, especially considering the high credit limits usually offered with credit cards. Thus, users must make a budget and stick to it when using UPI for routine monthly transactions. If you have multiple credit cards, allocate a credit card to manage smaller expenses like groceries or utility bills. For big-ticket expenses, ensure a robust repayment plan to avoid debt accumulation. Routinely check your outstanding balances and reconcile your expenses,” said Mr Shetty, as quoted by businesstoday.

Another one on the list is—connectivity issues. Most failed UPI payments are the result of poor connectivity. Multiple failed transactions can also lead to a conducive event of sending payments multiple times.

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Rishabh Sharma

Rishabh is an experienced content writer and editor, he is working for Viralbake to cover a diversified range of categories. His articles mainly focus on providing information, being a travel guide, educating others, and also making people aware of technology, after all, he is a technophile. When not writing he can be found gaming, watching movies, and travelling.

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