What's the news? "In order to further deepen the reach and usage [of UPI], it is proposed to allow linking of credit cards to UPI," the Reserve Bank of India (RBI) said in a press release dated June 8. Why does this matter? Unified Payments Interface (UPI) is the most widely accepted and used digital payment method in India, but currently, you can only use funds in your bank account to pay with UPI. By extending the facility to credit cards, consumers and merchants have more options to work with. Consumers get access to a credit line for payments and merchants get to accept credit card payments without having to install and pay for swiping machines. How will this work? We don't know yet. RBI said that RuPay credit cards will support this facility to start with, but the nitty-gritty details are yet to be announced. "This facility would be available after the required system development is complete. Necessary instructions will be issued to NPCI (National Payments Corporation of India) separately," RBI said. It could be a while before Mastercard and Visa enable their support (if at all) as they are already burdened by multiple other RBI regulations such as e-mandates and card tokenisation. A solution to RBI's new card storage guidelines? RBI's card storage guidelines kick in on July 1, according to which merchants and payment gateways are not allowed to store the credit and debit card details of their customers. This is expected to severely disrupt online card transactions because the alternative system…
Coming soon: Now pay with UPI using your credit card
RBI has proposed to allow linking credit cards to UPI, starting with RuPay. But there are some challenges that need to be addressed first.
- US govt warns businesses of ‘AI deception’, calls for mitigating risks before launching AI products March 24, 2023
- Here’s what TikTok’s CEO said in his U.S. Congressional Committee Hearing March 24, 2023
- Cyberabad police bust a gang selling personal data of 16.8 Crore citizens March 24, 2023
- Explained: What is Namma Yatri app and why is it joining ONDC March 24, 2023
- MediaNama Daily: What is ‘In’ in the world of Influencers? March 24, 2023
MediaNama’s mission is to help build a digital ecosystem which is open, fair, global and competitive.
Amazon announced that it will integrate its logistics network and SmartCommerce services with the Open Network for Digital Commerce (ONDC).
India's smartphone operating system BharOS has received much buzz in the media lately, but does it really merit this attention?
After using the Mapples app as his default navigation app for a week, Sarvesh draws a comparison between Google Maps and Mapples
In the case of the ‘deemed consent' provision in the draft data protection law, brevity comes at the cost of clarity and user protection
The regulatory ambivalence around an instrument so essential to facilitate data exchange – the CM framework – is disconcerting for several reasons.
Please subscribe to MediaNama. Don't share prints and PDFs.
You May Also Like
Google has released a Google Travel Trends Report which states that branded budget hotel search queries grew 179% year over year (YOY) in India, in...
135 job openings in over 60 companies are listed at our free Digital and Mobile Job Board: If you’re looking for a job, or...
Twitter takes down tweets from MP, MLA, editor criticising handling of pandemic upon government request
By Aroon Deep and Aditya Chunduru You’re reading it here first: Twitter has complied with government requests to censor 52 tweets that mostly criticised...
Rajesh Kumar* doesn’t have many enemies in life. But, Uber, for which he drives a cab everyday, is starting to look like one, he...