The Reserve Bank of India (RBI) today allowed payment from Rupay credit cards via UPI. This was announced by the RBI governor Shaktikanta Das today in the monetary policy review press conference.Initially UPI payments could be made from a bank account by linking one's bank account to UPI. However, later UPI apps also started allowing individuals to add credit and debit cards to make payments to merchants. So, you couldn't make payments to individuals (non-merchants) by using your UPI linked card.
By adding one's credit or debit card to UPI apps, one can make payment without the need to swipe it at POS machine. Just scan a QR code and choose the added credit/debit card as payment method to make the payment. Once you initiate a payment through the UPI app using a debit or credit card, a one-time password (OTP) is sent to your registered mobile number to complete the payment."To start with Rupay credit cards will be enabled with this facility. This arrangement is expected to provide more avenues and convenience to the customers in making payments through UPI platform. This facility would be available after the required system development is complete," RBI stated.Necessary instructions will be issued to National Payments Corporation of India (NPCI) separately, it added.Currently, UPI facilitates transactions by linking savings or current accounts through users' debit cards.