The Reserve Bank of India (RBI) recommended linking credit cards to UPI networks today.
Governor Shaktikanta Das declared that the procedure would begin with RuPay credit cards for the time being.
Currently, UPI allows transactions by linking customers’ debit cards to their savings or current accounts.
While many customers hold multiple credit and debit cards, UPI transactions have revolutionized the payments industry in India, with their hassle-free modus operandi, that need only a mobile phone.
The inability to utilize credit cards for any UPI transaction, has been the only major drawback as far as the UPI system, was concerned, which the RBI wants to nullify now.
Other major credit card providers, apart from RuPay, such as Visa and Mastercard are expected to be gradually brought into the fold.
Banks that support the RuPay credit cards include most major players such as Punjab National Bank (PNB), IDBI Bank (IDBI), Union Bank, State Bank of India (SBI), Bank of Baroda, Federal Bank and Saraswat Co-operative Bank.
RuPay also provides co-branded cards HDFC Bank, SBI, PNB and Union Bank.
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