The National Payments Corporation of India (NPCI) announced on Friday that RuPay credit cards will be linked to the Unified Payment Interface (UPI), India’s leading digital payment network, within the next two months. Furthermore, in the next 10 days, the NPCI is expected to send the framework of its proposal to India’s central bank, the Reserve Bank of India.
RuPay credit card issuers, including major banks such as State Bank of India (SBI), Bank of Baroda (BOB), Union Bank, and Axis Bank, have already submitted proposals to NPCI. ‘ We anticipate that the RuPay credit card linked to the UPI will be operational within the next few months. We are in discussions with BoB Cards 581 Cards, Axis Bank, and Union Bank of India. We should be able to begin in two months if we receive approval’, NPCI CEO Dilip Asbe stated.
The government believes that UP’s extensive reach into the country’s outlying areas can be used to increase credit penetration. Furthermore, it may enable payment companies to monetize UPI payments. However, experts argue that one of the primary reasons why UPI spread to every nook and cranny of the country was due to its zero fees. Merchant Discount Rates (MDR) are the source of contention, and banks, as well as the RBI, are considering a strategy to find a happy medium.
PhonePe was one of the first platforms to integrate UPI into its system when NPCI launched the revolutionary UPI system in 2016. A year later, several competitors followed suit, and UPI has since grown into a behemoth that even foreign nations want to own. Singapore and Bhutan have already adopted UP), and according to WION, France may soon join. Last month, NPCI International and the Lyra Network of France signed a Memorandum of Understanding (MoU).
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