RBI proposes to link credit cards to UPI, starting with RuPay cards at the RBI MPC Meet

In a significant change to how the Unified Payments Interface (UPI) works, the Reserve Bank of India (RBI) announced today that credit cards would also be permitted to be connected to UPI accounts. RBI said that this will increase the convenience for users and enhance the scope of digital payments. This definitely helps users to use digital payments and give them more options as well. 

The indigenous RuPay credit cards will be the first to be connected, followed by other card networks such as Visa and MasterCard. Customers could previously only attach their debit cards to UPI. RBI Governor Shaktikanta Das made the statement during his monetary policy address. 

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To pay with a credit or debit card with GPay, you must first link the credit card to the UPI app. You can link your card to make payment via credit or debit card using UPI in popular apps like GPay and PhonePe.

To add the credit, or debit card on GPay, follow the steps below –

Step 1 – Open the app and click on your profile picture.

Step 2 –Click on the payment methods. The app will show you current bank accounts that are added to the app. Click on 'Add credit or debit card' to add your card on the GPay.

Step 3 – You will be required to enter your card number, expiry date, CVV and cardholder's name, and billing address. Click on Save.

Step 4 – You will be required to accept the issuer's terms and conditions. Click on 'Activate' to start paying in stores and in merchants.

You will be asked to validate your credit card. For extra authentication, a one-time password (OTP) will be given to your registered cellphone number. After you have confirmed your card, you can use it to make purchases.

"UPI facilitates transactions by linking savings or current accounts through users' debit cards. It is now proposed to allow the linking of credit cards on the UPI platform, to begin with, the RuPay credit cards will be linked to UPI. This will provide additional convenience to the users and enhance the scope of digital payments," the governor said.

Unified Payments Interface (UPI) is a technology that integrates several bank accounts into a single mobile app (of any participating bank), combining many banking services, smooth fund routing, and merchant payments under one umbrella. It also handles "Peer to Peer" collect requests, which may be scheduled and paid according to need and convenience.