In a major shift in how the Unified Payments Interface (UPI) functions, the Reserve Bank of India (RBI) today said that credit cards too will be allowed to be linked to the UPI accounts.
The implementation will begin with the indigenous RuPay credit cards being allowed to be linked, followed by other card networks such as Visa and Mastercard.
Until now, customers could only link their debit cards to UPI.
The announcement was made by RBI Governor Shaktikanta Das in his monetary policy speech.
"UPI facilitates transactions by linking savings or current accounts through users' debit cards. It is now proposed to allow linking of credit cards on the UPI platform to begin with the RuPay credit cards will be linked to UPI," he said.
"This will provide additional convenience to the users and enhance the scope of digital payments," the governor said.
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