Central Bank of India proposes UPI access to credit cards to boost personal online transactions:- www.deekpay.com

　　The Central Bank of India has proposed to link the Unified Payment Interface (UPI) with credit cards, a move that aims to further promote UPI as the dominant payment method for personal online transactions in the South Asian market. Here is a detailed explanation of the proposal:

　　1. **UPI INTRODUCTION**: UPI is a payment protocol based on the Instant Payment System (IPS), which allows users to conduct fast and secure transactions via mobile devices. Currently, UPI facilitates transactions primarily by linking a savings or current account with the user's debit card.

　　2. **Proposal content**: Shaktikanta Das, Governor of the Reserve Bank of India (RBI), has put forward a proposal to allow credit card connectivity on the UPI platform, with RuPay credit cards being the first to be connected to UPI. RuPay is a home-grown Indian bank card network, promoted by the National Payments Corporation of India (NPCI).

　　3. **UPI GROWTH**: Since its launch five years ago, UPI has become the most popular way for Indians to transact.In May, the UPI network processed more than 5.9 crore transactions, which is a significant increase from 21 crore during the same period five years ago.

　　4. **User convenience**: Linking UPI to credit cards will provide additional convenience to users and enhance the scope of digital payments. This means that users will be able to make transactions not only through debit cards but also through credit cards.

　　5. **Monetisation Model Concerns**: Currently, UPI does not have a monetisation model, which has raised concerns among fintech executives. They have asked RBI to reassess the situation. Credit card instruments typically operate on the basis of merchant discount rates, which are split with banks and payment service providers.

　　6. **Promotion of indigenous payment systems**: By linking the RuPay credit card to UPI, the Central Bank of India aims to promote indigenous payment systems and reduce dependence on foreign payment systems.

　　The implementation of this proposal will help to further drive digital payments in India and also provide users with more diverse payment options.