Who can use RuPay Credit Card on UPI?
Currently, the RuPay Credit Card on UPI facility is available on the BHIM app only for certain bank customers. “Customers of Punjab National Bank, Union Bank of IndiaAnd Indian Bank According to a circular issued by NPCI on September 20, 2022, people will be the first to be able to use RuPay credit card with BHIM app on UPI.
Linking RuPay Credit Card with UPI
Experts say that the process of linking a RuPay credit card with UPI is similar to that of a user linking a savings bank account or debit card with UPI. Karan Mehta, founder and CTO of digital payment app Ring, said that it should be noted that the mobile number on the user’s phone should be the same number that is linked to the credit card of the bank that issued it.
What payments can you make using RuPay credit card on UPI?
The RuPay credit card on UPI can be used only for merchant payments. A customer can also use this new facility for electricity or OTT bill payments or other recurring merchant payments as RBI has allowed auto-pay option for recurring transactions up to Rs 15,000 without additional factor of authentication, said Lalit. Choudhary, Senior Vice President, Mindgate Solutions.
You cannot make these payments using RuPay credit card on UPI
The following transactions cannot be done using RuPay credit cards on UPI, although you will be able to do them using direct debit from savings account on UPI, explained Mehta.
1) Transfer money to any other personal UPI handle. Example: You cannot transfer money to your friends or family who have created their UPI handle as individuals using RuPay credit card on UPI.
2) The RuPay Credit Card-UPI handle cannot be used to make payments to any other Credit Card-UPI handle as well. Essentially, this means that you cannot make payments to someone else’s credit card through UPI using your own credit card.
3) Transfer of money to small merchants under the P2PM category (with small merchants with an expected inward UPI transaction of Rs 50,000 per month or less is classified as ‘P2PM’ by NPCI). This will include a large number of small street vendors/shops-vegetable vendors, street food vendors, chaiwalas etc.
“So this effectively means that credit cards can be largely used to pay through UPI only for large merchants,” he said.
“NPCI has introduced adequate safeguards to ensure that the restrictions in physical card presentation for restricted MCC codes are applicable while using credit cards on the UPI platform. This OC 82 i.e. IPO, Mutual Fund It is enabled by restricting the MCC as defined in Collection use cases like credit card bill payment, loan repayment, B2B collection and pre-approved transactions. The restrictions in place are scrutinized at both NPCI and bank level so that To ensure that only RBI compliant credit payments are enabled in the ecosystem,” Choudhary said.
“It has long been recognized that a credit card cannot be used for cash withdrawal at a merchant location. For example, you cannot swipe your credit card at a store and exchange a swipe from the shopkeeper. You can request cash to be given to you. The same provision has been extended to RuPay credit cards on UPI. One cannot make UPI payments and request reimbursement in cash. Reimbursement, if any, directly to credit cards Will be back,” said Amit Das, CEO and co-founder, Think360.ai, a fintech company.
What will be the transaction limit for RuPay credit card on UPI?
The standard transaction limit for RuPay credit cards over UPI has been set at Rs 1 lakh per transaction for most merchants. “For verified merchants in specific categories, the limit can go up to Rs 2 lakh per transaction,” said Siddhant Ryan Malhotra, Founder and CEO, SlayPay. The transaction limit for non-verified merchants has been fixed at Rs 2,000 per day.
Will you have the option to choose RuPay credit card while using UPI?
Users can choose their preferred payment option on the BHIM UPI app while scanning the QR code as the app will provide the facility to do so. At that time if the user wants to pay through the card then they can choose the credit card as the payment option.
How to Check RuPay Credit Card Transaction Details?
The NPCI circular stated that the UPI app and credit card issuers shall provide necessary functionality to check the available balance and total outstanding of RuPay credit cards on UPI on a real time basis.
Can you pay your RuPay credit card bill through the UPI app?
Das said, “Yes. Customers can pay their entire credit card bill through UPI. This is a nice and convenient feature for customers who are getting familiar with digital payments through UPI.”
How will this benefit merchants and customers?
“For merchants, accepting credit cards requires expensive PoS infrastructure, but now they can accept credit card payments with cheap QR codes,” Malhotra said. Merchant Discount Rate (MDR), interchange or other Fee will not be charged. As per the NPCI circular, using RuPay credit card through UPI has been reduced.
“Primarily, this offering aims to drive three things forward, in our opinion – deepening digital finance, bringing more coverage on the UPI side, and driving the growth of RuPay as a reliable alternative to Visa and Mastercard. For UPI by introducing RuPay credit cards, the ecosystem will be able to create credit line products on the UPI rail on the go. This can become the fastest way to run credit products in Tier III or IV regions across the country,” Das said. .