UPI Credit Points: The way digital payments are made in India has changed rapidly in the last few years. While people previously relied on cash or card swipes, paying by scanning a QR code with a mobile phone has now become commonplace. UPI has made payments faster, easier, and more secure. Now, a major change has been added to this digital ecosystem, allowing RuPay credit cards to be linked and used with UPI. This provides customers with additional benefits along with their payments.

Through RuPay credit cards linked to UPI, people can make credit card payments simply by scanning a QR code, without needing to swipe their card. This has further expanded the scope of digital payments and made using credit cards easier.

What changes when a RuPay credit card is linked to UPI?

When a RuPay credit card is linked to a UPI ID, the payment is made directly from the credit card, not from the bank account. This gives the customer the benefit of a credit period and also allows them to earn card reward points.

Following instructions from NPCI, many banks are now offering the same rewards on RuPay credit card payments made via UPI as they do on regular card transactions. This is expected to increase interest in using credit cards.

How does this system work?

Customers can add their credit card to their UPI app. Based on the mobile number, the bank provides the facility to identify and link the card. Once linked, customers can make payments by scanning the merchant’s QR code, and authentication is done using the UPI PIN.

With this feature, customers can increase their chances of earning rewards or cashback on everyday purchases such as groceries, medicines, petrol, or other expenses, although this entirely depends on the card and the bank’s scheme.

Which payments are eligible for benefits and which are not?

This facility is primarily designed for merchant payments. This means it can be used at shops, online merchants, or for business QR codes. Person-to-person money transfers are generally not allowed.

Additionally, credit card UPI payments may be limited or restricted in some categories, such as cash withdrawals, loan platforms, or certain financial services.

Limits, Charges, and Other Rules

The transaction limit for RuPay credit card transactions on UPI depends on several factors, such as the card limit, the bank’s limits, and the user’s set limits. Generally, the daily UPI limit can be up to approximately one lakh rupees, but it cannot exceed the card limit.

There are generally no additional charges for linking or regular transactions, but a surcharge may apply to certain categories, such as fuel payments.

Why This Change is Important for Customers and Banks

Experts believe this system will help increase the use of both digital payments and credit cards. This could lead to increased credit usage even for small expenses and provide customers with additional benefits. According to reports, this could strengthen the digital credit ecosystem and increase access to credit for small businesses.

The Future of Digital Payments

This combination of UPI and credit cards points towards the next phase of the digital finance sector. It offers customers the benefits of convenience, security, and rewards all in one. This model is expected to evolve further in the future.

About the Author

Rohit P

My name is Rohit Pal, and I have been working in the field of journalism for the past five years. During this time, I have written on a variety of topics, including business, automobiles, technology, and politics. I have worked with several major organizations and am currently working with Timesbull.

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