Should be able to start in two months after RBI approval, says NPCI CEO

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RuPay-UPI credit card link “should be able to start in two months”, says NPCI CEO

New Delhi: The UPI-linked RuPay credit card could be operational in just a few months, Dilip Asbe, managing director and chief executive of the National Payments Corporation of India (NPCI) said on Friday.
Speaking at an event in the financial capital Mumbai, Asbe said: “We are talking about BoB Cards, SBI Cards, Axis Bank and Union Bank of India. We should be able to submit our proposal to the Reserve Bank of India (RBI) in ten days and once we get approval we should be able to start in two months.
Last month, Reserve Bank of India Governor Shaktikanta Das said credit cards would be allowed to be linked to UPI and initially it would only be India’s RuPay card network. Until now, customers were only allowed to link their UPI accounts through debit cards.

Highlighting that the facility will provide additional convenience to users and improve the reach of digital payments, Das said, “UPI facilitates transactions by linking savings accounts or checking accounts through users’ debit cards. It is now proposed to allow linking of credit cards on the UPI platform to begin with, RuPay credit cards will be linked to UPI.”

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Merchant discount rate

Since UPI has no MDR, Asbe said NPCI may have to look after small merchants and protect them from MDR, adding that existing credit card service merchants can continue to pay.

NPCI aims to reach 250 million users and is also exploring how 50 million merchants can start accepting credit cards. “We may have to take care of small merchants and protect them from MDR while existing credit card merchants can keep paying,” NPCI CEO said at the event.

The NPCI is also trying to set up the cross-border mechanism for UPI transactions, he added.

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