RBI proposes to link credit cards with UPI

Tags: Economy/Finance

The Reserve Bank of India has proposed to allow linking of credit cards with Unified Payments Interface (UPI).

• RBI Governor Shaktikanta Das said that the integration will first start with the indigenous RuPay credit card.

• Both RuPay and UPI are managed by the same organisation, National Payments Corporation of India (NPCI).

• Significance  of this move

• The linkage of UPI and credit cards may result in increased usage of credit cards in India.

• It also opens the way to build credit on UPI through credit cards in India.

• As of now, UPI has been linked only with debit cards and bank accounts.

• This will provide additional convenience to the users and widen the scope of digital payments.

• About UPI

• Unified Payments Interface (UPI) is a single platform that integrates various banking services and facilities under one umbrella.

• It is developed by National Payments Corporation of India (NPCI).

• The names of the top UPI apps currently are – PhonePe, Paytm, Google Pay, Amazon Pay and BHIM.

• NPCI launched UPI in 2016 with 21 member banks.

• for more update please visit news of 23 april