The Central Bank of India proposed on Wednesday that UPI access to credit cards to further promote this fast-growing payment agreement to become the mainstream of personal online transactions in the South Asian market Shaktikata DAS, governor of the Reserve Bank of India (RBI), said at a briefing: "at present, UPI promotes transactions by connecting users' debit cards to savings or current accounts.".
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He continued: "it is now recommended to allow credit cards to be connected on the UPI platform, and rupay credit cards are the first to connect to UPI.". Rupay is a local bank card network in India. It is promoted by the national payment company of India, which is a special institution of RBI and also responsible for supervising UPI payment.
UPI was launched five years ago and established by a retail banking alliance. It is the most popular trading method in India. In May, UPI network handled more than 5.9 billion transactions, an increase from 21million transactions in the same period five years ago. He said that allowing UPI to run on credit cards would provide users with additional convenience and enhance the range of digital payments.
At present, UPI does not have a monetization model. Many financial technology executives expressed concern about this and asked RBI to reassess it. The lack of such information is also critical because credit card instruments operate on the basis of some of the highest merchant discount rates, which they share with banks and payment service providers.