Credit Card UPI Link: RBI's big decision for credit card holders, now you will be able to do transactions through UPI too

RBI has given a big relief to the credit card holders. RBI Governor Shaktikanta Das said on Wednesday that credit cards will be linked to the Unified Payments Interface (UPI). About 7.5 crore credit card holders of the country will benefit from this decision.

Giving information about the decisions of the Monetary Policy Committee (MPC), Governor Shaktikanta Das said that initially only Rupay Credit Card will be linked with UPI. Later all credit cards will be brought under its ambit. 

According to RBI, there are 26 crore unique users and five crore shopkeepers-businessmen connected to the UPI platform. In May 2022, there have been 594.92 crore UPI transactions with a total value of Rs 10.40 lakh crore. Das said that at present only debit cards linked to savings and current accounts are linked with UPI. Linking credit cards will help in expanding the scope of UPI. He said that necessary guidelines have been given to the National Payments Corporation of India (NPCI) to prepare the new system.

Currently, the domestic card market is dominated by US companies like Visa and Master. With the introduction of linking RuPay credit cards with UPI, their demand will increase. In such a situation, Rupay card will have a direct competition with American companies.