The RuPay credit card, developed by the National Payments Corporation of India (NPCI), is now eligible for Unified Payments Interface (UPI) transactions, allowing peer-to-merchant payments. The Reserve Bank of India approved this interoperability in September 2023 to enhance digital payment convenience. These transactions have a daily cap of Rs 1 lakh, while in merchant category codes, up to Rs 2 lakh is permissible, contingent on the card's available credit limit, as per NPCI.
Notably, UPI transactions using credit cards do not attract additional charges and can be executed through QR code scans. Popular apps supporting credit card payments on UPI include PhonePe, Google Pay, Paytm, BHIM, BHIM PNB, CRED, CanaraA1, Gokiwi, PayZapp, Slice and Mobikwik.
Several banks, including Punjab National Bank, Union Bank, Indian Bank, HDFC Bank, Canara Bank, Axis Bank, Kotak Mahindra Bank and BFSL, facilitate credit card payments on UPI. The process of linking a credit card to UPI involves downloading a UPI app, selecting the credit card as a payment option, choosing the bank and entering the required card details, followed by setting a UPI pin.
A recent NPCI circular outlines that credit card payments via UPI will be subject to limits determined by the issuer, who may also specify transaction limits. These measures aim to bolster consumer confidence in RuPay credit cards for various payments, including those related to e-commerce, healthcare and education, according to Sachin Castelino, NPCI's Chief Strategy and Transformation Officer.