-Credit Cards to be linked to UPI platform; to begin with Rupay credit card to be linked
“Linking of credit card to UPI was always expected and will turn out to be a great payment option. This will further increase the usage of UPI even for large ticket items as the users can have balanced option to choose how they can pay. Thus, it will widen the digital payments footprint in India, bolster merchant partnerships of card networks starting with home-grown payments system- RuPay and eventually other international players like Visa and Mastercard and elevate customer payments experience. Additionally, it will pave way for other geographies to adapt UPI much faster and easier. UPI is becoming the default payment mechanism; the latest benchmark being Rs 10.4 lakh crore transactions processed through UPI in May 2022 and it will evolve into many more embedded payments in the near future. RBI’s latest announcement for the extension of linking UPI to credit cards is a great move towards the cashless economy.”
-Hiking cap on e-mandate for card recurring payment
“With pre-paid payment instruments and card transactions gaining traction, the RBI’s move in hiking cap on e-mandate for card recurring payments is a big one. A win-win for both: banks and customers; the proposed enhanced limit from the older Rs. 5000 to Rs. 15,000 will empower customers to stay in control of their own recurring payments. The future transaction experience for them will be hassle-free as recurring payments of high values up to Rs.15,000 will not need an additional factor authentications (e.g. OTPs), after registration. Additionally, e-mandate with the increased cap for recurring payments will become a standard for making many common payments from rent to receivables, various maintenance payments and possibly embed into emerging IOT functions.”