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Credit cards can now be linked to UPI
June 08, 2022
The execution will start with the native RuPay credit cards being allowed to be linked, trailed by other card networks like Visa and Mastercard.
Until now, clients could interface their debit cards to UPI.
The announcement was made by RBI Governor Shaktikanta Das in his monetary policy speech.
“UPI facilitates transactions by linking savings or current records through users’ debit cards. It is presently proposed to allow linking of Visas on the UPI platform in the first place the RuPay Mastercards will be linked to UPI,” he said.
“This will give extra comfort to the clients and improve the extent of digital payments,” the lead representative said.
It is as yet not satisfactory how the Merchant Discount Rate (MDR) will be applied for UPI transactions done using credit cards. For every transaction, the trader pays a certain percentage of the transaction amount which is then divided among the banks and payment service providers.
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