Union Bank of India
As per the Union Bank of India tweet, “UnionBankOfIndia is the chosen bank to offer UPI payments on RuPay npci Union Bank Credit Card as announced by RBI Governor DasShaktikanta in the presence of our MD & CEO A Manimekhalai and ED Mr. Nitesh Ranjan.”
#UnionBankOfIndia is the chosen bank to offer #UPI payments on @RuPay_npci Union Bank Credit Card as announced by R… https://t.co/LGw7lAmWtH
— Union Bank of India (@UnionBankTweets) 1663684974000
According to the Union Bank of India press release, “With the launch of UPI Credit Card, Union Bank Rupay Credit Card holders can now seamlessly make UPI payments to merchants through BHIM app. Also, Customers can Scan UPI QR code of merchants and make payment using his Credit Card. At present, the functionality is enabled on BHIM App of NPCI for Union Bank Rupay Credit Card holders. Shortly the product will be enabled for other UPI apps in the payment ecosystem.”
Punjab National Bank, Indian Bank
“With the linkage of RuPay Credit Card on UPI, customers will benefit from the increased opportunity to use their credit cards, and merchants will benefit from the increase in consumption by being part of the credit ecosystem with the acceptance of credit cards using assets like QR codes. RuPay Credit Cards will be linked to a Virtual Payment Address (VPA) i.e. UPI ID, thus directly enabling safe, and secure payment transactions. The initial phase of operationalisation will be centred on extracting actionable learnings that would be used to fine-tune the proposition in later phases to scale up the usage. Customers of Punjab National Bank, Union Bank of India, and Indian Bank will be the first to be able to use RuPay Credit Card on UPI with BHIM App,” stated a National Payment Corporation of India press release.
PNB becomes one of the first banks to launch UPI on RuPay Credit Cards. At Mumbai today, RBI governor, Sh. Shaktika… https://t.co/hcQhvU2ctw
— Punjab National Bank (@pnbindia) 1663690887000
“UPI on Credit Card is likely to be a game changer as we will see an increase in the number of transactions on UPI with the payment instrument being credit cards. Initially, it will be allowed for RuPay credit cards only and going forward we expect that other scheme credit cards may also have this UPI linkage. From a pricing perspective, we expect the pricing (MDR) for low value UPI on credit card transactions to be zero, however for higher value transactions it is expected that the MDR for UPI on credit cards will be similar to credit card swipe at online / physical locations,” said Mihir Gandhi, Partner & Leader – Payment Transformation, PwC India.
The Reserve Bank of India, in its Statement on Development and Regulatory Policies dated June 8, 2022, announced the linking of UPI with RuPay credit cards. As per the statement: UPI has become the most inclusive mode of payment in India. Currently, over 26 crore unique users and 5 crore merchants are onboarded on the UPI platform. In May 2022 alone, 594.63 crore transactions amounting to Rs 10.40 lakh crore were processed through UPI. UPI currently facilitates transactions by linking Savings /Current Accounts through Debit Cards of users. The interoperability of PPIs has also facilitated access of PPIs to the UPI payment system for undertaking transactions. In order to further deepen the reach and usage, it is proposed to allow linking of credit cards to UPI. 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. Necessary instructions will be issued to NPCI separately.