How to Link a Credit Card to Your UPI Account: A Step-by-Step Guide

Posted By MV Prakash
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UPI services rapidly expand nationwide, and interest in digital payments is growing. From tea stalls to large stores, UPI payments are being widely accepted. In this context, linking credit cards to UPI accounts has recently become available. Let’s explore how to link a credit card with UPI.

The National Payments Corporation of India (NPCI) developed UPI payments in India. This system was established to facilitate quick money transfers from one account to another, typically within seconds.

Since its inception in 2016, UPI services have been increasing in popularity. With digital wallet services like PhonePe, Google Pay, and Paytm emerging, the incidence of digital payments has surged. To encourage even more digital transactions, the NPCI is continually introducing new updates.

Linking Your Credit Card to UPI

Previously, UPI transactions were limited to the amount available in users’ savings accounts. However, linking a credit card to a UPI app has recently been introduced, allowing users to make payments with their credit cards, even for small amounts.

Cardholders can settle their credit card bills after the payment due date. Notably, this feature is only available for RuPay credit cards, which can be linked to UPI for transactions.

Steps to Link Your Credit Card

  1. Open your UPI payment app.
  2. Select the three dots or menu icon on the left side of the screen.
  3. Navigate to the “Payment Methods” option.
  4. Select “RuPay Credit on UPI” from the available options.
  5. Your bank details will be displayed. Choose the bank that issued your RuPay credit card.
  6. Your card details will appear. Add your card to this section.
  7. When making a payment, select the credit card option, and the amount will be deducted from your credit card balance.

RBI’s Recent Decision

The Reserve Bank of India (RBI) recently made a significant decision regarding UPI payments. It now allows prepaid payment instruments (PPIs) to enable UPI payments through third-party mobile apps.

Currently, UPI transactions can occur between bank accounts or through third-party applications. The RBI’s latest decision will grant greater payment flexibility for PPI management entities, such as gift cards, metro rail cards, and digital wallets.

This new feature enhances the convenience and versatility of digital payments, making it easier than ever for users to manage their transactions.

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