Credit cards and UPI are both essential components of India's digital payment ecosystem, and integrating the two has become a standard feature on many platforms. This setup enables customers to begin transactions with their credit cards via UPI apps and requires specific criteria and issuer compliance. Here's a look at the details of linking credit cards with UPI.
In September 2022, the NPCI introduced the facility to connect RuPay credit cards to UPI. RuPay Credit Cards can now be linked to UPI around 23 major banks, including HDFC Bank, ICICI Bank, SBI Cards, Axis Bank, Yes Bank, Punjab National Bank, Union Bank of India, Canara Bank, Kotak Mahindra Bank, and IDFC First Bank.
Why Linking Your Credit Card to UPI Could Be Beneficial
Connecting your credit card to UPI enables you to pay even at establishments that do not directly accept cards which simplifies everyday purchases. By using your credit card's billing cycle, you can delay payments which helps in better cash flow management. Your payments are further protected by the fact that UPI transactions are protected by multi-factor authentication such as UPI PIN and OTP. Also, you can use your credit limit without having to carry your physical card, making it a more convenient and efficient way to manage your costs.
Things to Keep in Mind
Despite being convenient, using credit cards to make payments might encourage overspending, which, if left unchecked, could lead to greater costs.
UPI-based credit card transactions might not always be eligible for cashback or points, depending on the card issuer's policies.
Credit card balances that are not paid within the billing cycle may incur interest and late payment fees.
Certain banks can limit credit card transactions and stop payments that exceed certain thresholds.
How to Link Rupay Credit Card to UPI
1. Download a UPI-enabled App: Go to the Google Play Store, install any app that supports UPI, like BHIM and finish the registration procedure.
2. Select Credit Card Option: After registration, open the app and choose 'Credit Card' as your preferred payment method.
3. Choose Your Issuing Bank: Select your issuing bank's name from the dropdown list.
4. Link Your Mobile Number: Make sure your mobile number has been updated with the issuing bank. Your masked Rupay credit cards will be appeared on the screen.
5. Select Card & Set UPI PIN: To complete the process, select the card you want to link, confirm your selection, and then generate your UPI PIN.
