Exciting News for RuPay Credit Card Users: Enhanced UPI Benefits
If you are a RuPay credit card user and have been using it for UPI transactions, we have some great news for you. Starting September 1st, users of RuPay credit cards will receive the same benefits that other credit card users enjoy when making payments through UPI. Previously, these benefits were not available for RuPay credit card users, making it a significant update for many customers.
Background on the Decision
This decision by the National Payments Corporation of India (NPCI) comes in response to concerns that RuPay credit card users were being discriminated against and not receiving the same benefits as users of other credit cards. NPCI has issued directives to all banks to ensure that there is no disparity in the services and facilities provided to different credit card users.
Linking RuPay Credit Cards with UPI
In June 2022, the Reserve Bank of India (RBI) permitted the linking of RuPay credit cards with UPI, allowing for a seamless payment experience. Prior to this, the RuPay credit card was primarily used through the Pay Now service. In October 2023, NPCI implemented an interchange charge for payments using RuPay-U-IP, which applies a charge of approximately 2% for transactions exceeding ₹2,000.
Advantages of Using RuPay Credit Cards
Utilizing RuPay credit cards with UPI is incredibly convenient, benefiting both customers and merchants. Customers can easily make payments using QR codes, simplifying the transaction process. Currently, 16 banks offer this feature, including major players such as Punjab National Bank, Union Bank, Indian Bank, HDFC Bank, Axis Bank, Kotak Mahindra Bank, and ICICI Bank.
Promoting UPI and RuPay Credit Cards
Both RBI and NPCI view the integration of credit cards with UPI as a major milestone, believing it will make these payment systems accessible to a wider audience. UPI credit cards are available in two formats: the RuPay UPI credit card and the UPI credit line. Officials report that UPI credit transactions have surged, reaching up to ₹10,000 crores monthly, with a substantial portion attributed to RuPay credit card transactions.
Global Recognition
Recently, RBI Governor Shaktikanta Das mentioned in a conference in Mumbai that efforts are underway to elevate UPI and RuPay cards to a global standard. As a result, several countries have recognized UPI as a valid payment method, including Bhutan, Nepal, Sri Lanka, Singapore, the United Arab Emirates, Mauritius, Namibia, Peru, and France.
Conclusion
The enhanced benefits for RuPay credit card users when transacting through UPI herald a new era of inclusivity and convenience in digital payments. With the support of RBI and NPCI, these improvements are set to revolutionize how we perceive and utilize credit cards and digital payments in India.
