Credit Card-UPI Linking: Here’s a excellent news for Credit Card customers. The Reserve Bank Of India (RBI) has allowed linking of UPI with Credit Card. However, this facility might be initially accessible for RuPay Credit Cards solely.
Currently, UPI facilitates transactions by linking financial savings and present accounts by way of debit playing cards. Users will quickly be capable of do UPI transactions by linking it with their Rupay Credit Cards.
In the ‘Statement on Developmental and Regulatory Policies’ launched after the bi-monthly financial coverage meet at the moment, the central financial institution mentioned, “In order to further deepen the reach and usage, it is proposed to allow linking of credit cards to UPI. To start with Rupay credit cards will be enabled with this facility.”
RBI expects that this association will present extra avenues and comfort to the purchasers in making funds by way of UPI platform.
“This facility would be available after the required system development is complete. Necessary instructions will be issued to NPCI separately,” the RBI assertion mentioned.
According to RBI, over 26 crore distinctive customers and 5 crore retailers are onboarded on the UPI platform at the moment. In May 2022 alone, 594.63 crore transactions amounting to Rs 10.40 lakh crore had been processed by way of UPI.
Meanwhile, the RBI at the moment raised repo price by 50 bps 4.9 p.c. The RBI MPC additionally famous that inflation might be probably stay elevated within the first three quarters of the present monetary yr.
The repo price hike is prone to end in elevated lending charges by banks and debtors could must pay extra for mortgage EMIs.
The repo price hike can also make residence loans costlier and hit inexpensive and mid phase housing demand, based on specialists.
Source: www.financialexpress.com”