RuPay credit card-UPI linkage likely to be operational soon

Aug 09,2022
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As the Chief executive officer(CEO) and MD of National Payments Corporation of India(NPCI) Dilip Asbe notified that soon RuPay credit cards would be linked to the Unified Payments Interface(UPI), and expect it to be operational within a few months.
Until now users were only allowed to link their UPI accounts through debit cards.

“UPI aids transactions by linking current or savings accounts through customers' debit cards. It is now made to allow linking of credit cards to the UPI system to begin with the Ru-Pay credit cards will be linked to UPI," RBI governor Shaktikanta Das had said.

This announcement has raised a few brows on how MDR or Merchant Discount Rate will be charged since UPI has zero MDR. It is still to be seen how the NPCI and RBI devise this formula on how MDR will be charged on credit cards through the Unified Payments Interface system.
Elaborating more on this NPCI's MD has said that the NPCI’s objective is to go towards 250 million users and how to encourage doing smaller credits. Furthermore, NPCI is also looking at how 50 million merchants can start accepting credit cards.

“We must take care of the smaller merchants and protect them from the MDR while the pre-existing credit card servicing merchants should continue to pay,” said Asbe.